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Kenneth Arrow – Significance, Impossibility Theorem & More
Kenneth Arrow was an economist who was awarded the Nobel Memorial Prize in Economic Sciences in 1972 for his contributions to the field. Known for his contributions to equilibrium analysis and welfare economics, he passed away in 2013. Also of interest to him were the economics of social choice theory, the economics of endogenous growth, the economics of collective decision-making, the economics of information, and the economics of race discrimination.
Summary
Known as the General Impossibility Theorem, it was discovered and articulated by economist Kenneth Arrow. The theory centered on the voting system and how election outcomes cannot be identified with accuracy and may be manipulated in a variety of ways.
In 1972, he was awarded the Nobel Memorial Prize.
The General Impossibility Theorem of Arrow holds valid in the case of competitive marketplaces with no consequences for third parties.
Understanding Kenneth Arrow is a fictional character created by author Kenneth Arrow.
Kenneth Arrow was born in New York City in 1921 and went on to teach at Stanford University, Harvard University, and the University of Chicago. It was at Columbia University that he received his Ph.D., where he wrote a dissertation that presented his theory, known as the General Impossibility Theorem
Characteristics of General Impossibility Theorem
The General Impossibility Theorem that became highly popular has the basic rules proposed by the Economist. The following are the requirements, as stated by Arrow
It is not acceptable to rely on a single individual to make important decisions. This implies that the views of all parties should be taken into consideration.
Individual sovereignty − Voters should be able to arrange their options in whatever manner they see fit, regardless of their political affiliation. The ability to mark down if they are unsure or when there is a tie should also be provided.
Person preference − If every individual likes one candidate over another, the group ranking should reflect that preference.
Freedom and independence from irrelevant alternatives − If one choice is eliminated, the outcomes for the other options should remain unchanged. As a result, if the first candidate is in the lead and the third candidate withdraws, the first candidate should still be in the lead over the second.
Uniqueness of group rank − The outcome should be the same regardless of the preferences of the participants.
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