Arrow's Impossibility Theorem

Categories: Econ, Trading

There are three cavemen running for chief scribe. The one with the most rocks gets to go um...clubbing. Can the cave folk agree to a candidate ranking order based on specific cave criteria?

According to Kenneth Arrow, the answer is no. Arrow argued that when there are three or more candidates in the running, and we add a whole bunch of conditions to reflect fairness, no conclusion exists. Social choice is not a unified thing. Thus, there's no way to pick a specific ranking order of candidates in a fair and balanced manner.



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