Another desideratum is that voting procedures should always produce coherent decisions.But as the Marquis de Condorcet showed in 1785, incoherence can occur in a majority voting system where choices are sequentially considered pairwise: specifically, that it is possible that candidate A defeats B, B defeats C, but C defeats A, thereby failing to produce a coherent notion of a winner.The recent death of Kenneth Arrow (who was born on 23 August 1921) represents both the loss of one of the transcendent minds in the history of economics, and the closing of a golden age of economic theory.
Condorcet’s remarkable insight leads to the question of whether alternative voting schemes can avoid such outcomes.
Arrow’s even more remarkable (1951a) analysis, which was his doctoral dissertation, asked whether there can be any procedure that respects the preferences of all and at the same time always produces coherent decisions?
https://au/nla.cat-vn1070380 Arrow, Kenneth Joseph.
Essays in the theory of risk-bearing [by] Kenneth J.
1971, Essays in the theory of risk-bearing [by] Kenneth J.
Based on series of Yrjo Jahnsson lectures delivered 1963 in Helsinki, Finland, and published in 1965 under title: Aspects of the theory of risk-bearing. This column outlines the ideas of one of the transcendent minds in the history of economics.The author, holder of a chair named in Arrow’s honour, notes that while his contributions were central in creating much of what constitutes modern quantitative social science, he was always profoundly aware of the limitations of the edifice, constantly seeking to challenge and broaden economic theory.Cornell Law School professor Oskar Liivak has written in a paper for a conference at Stanford University that Arrow's "paper has been one of the foundational theoretical pillars of the incentive based theory of patents as Arrow’s work is thought to rule out a strictly market-based solution." A fundamental tenet of the paradox is that the customer, i.e.the potential purchaser of the information describing a technology (or other information having some value, such as facts), wants to know the technology and what it does in sufficient detail as to understand its capabilities or have information about the facts or products to decide whether or not to buy it.Arrow and the larger body of scholars in this golden age both developed the logical foundations of ideas whose origins go back to Adam Smith and the beginnings of economics, and extended the domain of economics to contexts far beyond markets of conventional supply and demand.Arrow’s contributions span virtually all of economic theory, but they can be approximated as falling into five distinct areas.is a problem that companies face when managing intellectual property across their boundaries.This happens when they seek external technologies for their business or external markets for their own technologies.The economic approach to individual decision-making is derived from the interplay of preferences, constraints, and beliefs.This approach, when combined with the conceptualisation of observed outcomes for an economic environment as equilibria, allows for clear understanding of how markets create and adjudicate interdependences in these decisions.