Arrow Social Welfare Function

A form of social welfare function, specifying how one arrives at social welfare from individual utilities by having reasonable requirements. These are completeness: in a choice between alternatives A and B either A is socially preferred to B, or B is preferred to A, or there is a social indifference between A and B; transitivity: if A is socially preferred to B and B is preferred to C then A is also preferred to C; if every individual prefers A to B then socially A should be preferred to B; non-dictatorship: social preferences should not depend upon the preferences of only one individual; social preferences should be independent of irrelevant alternatives: that is, the social

18 Ascertainment Bias preference of A compared to B should be independent of preferences for C.

See Arrow Impossibility Theorem, Bergson-Samuelson Social Welfare Function, Pareto Optimality.

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