Among many achievements, in particular the research made history with two issues : the contradictions of social preferences that he developed on the “Impossibility theory” or the “paradox”Adam Smith and the “individual selfishness that produces the public good of a market”suggesting his famous theory of the welfare survey.
Kenneth Joseph Arrow, shaped by the experience of poverty. His businessman father, he lost everything during the great crisis. Meanwhile, the Arrow he completed his masters degree in mathematics at Columbia University at the age of 19 yet. During the war, training courses, gave up and joined the army Dec.
1951 “published in social choice and individual values” in a dissertation entitled, explored the issue into the preferences of individuals the preferences of society as a whole. Most likely, the famous French enlightenment thinkers Condorcet (1743-1794) “the paradox of choice”drew inspiration from. “This is going to be about a vote, if the voting among alternatives from a societal perspective for selecting most excellent how can it be done better?” The response is stunning: such a vote is impossible, the most repressive bringing results and Polls of the time.Voting system academics for a long time can lead to absurd consequences, he knew, but the arrow went further and “the community’s preferred things” showed that the idea is irrational.
His thesis, “a capitalist democracy there are two basic methods for social Preferences: the “Political” voting and decisions “economic” mechanism for decisions on Sunday.” in the introduction section began with the sentence, explained the problem addressed: the “collective choice to achieve a natural way to the majority of society if they choose one option over the other is to be preferred. If only two choices if you had to choose one over the other it wasn’t a problem. But, say, you have three options: A, B, and C. there are three people: 1, 2, and 3.Of these, 1 No.lu A to b To C. The person (hence A C) preferred, 2 No.Lu, B. C. C. A. (hence B. A.) preferred, 3 No.A B. C. A. and Lu’s work (hence B to C) is preferred to assume that. B. a majority, the other A B C majority preferred to. Hence, C is preferred to B. and b to society can say that. If we accept society behaved rationally, we have to say that a is preferred to C. However, C. A. a majority of society prefers.Hence, we try to reach out to the social from the individual to briefly explain this method is to fulfill the conditions of rationality that fails.”
If they fail in the face of more than two alternatives and four criteria is laid out with no system he couldn’t bring all four of these requirements, instead of proved. The judgement of these all the alternatives open to an unrestricted area where it is, and dayatmasiz a result for undirected non-oppressive regime, sorted in tekduzelilik individuals to affect the social ranking of the alternatives was the preference they are interested in. For example, if 3 people vote (X, Y, and Z), the divide between: 1: The X doesn’t get anything, Y, and Z split half and half. 2: does not receive anything Y, X, and Z are split half and half.3: anything Z does not receive X and Y are split half and half. 4: The game is divided into 3 equal parts. Each individual will vote as much as possible to achieve that, everyone’s choice is the third from the top of the fourth rankings, and a choice of 2-to-1 against equality and non loses. Increasing preferences for the welfare of others is not based on the principle of the welfare of anyone on artama, as there is no chance for the fourth choice.
“The theory of impossibility” or “Paradox”, has enabled us to achieve significant results through the use of mathematics in Sociology. This theorem is “social preference” and it’s called the rulers of a country to choose from, the company’s Board of Directors created a new and very broad academic field to identify the strategies of the company. No electoral system that isn’t perfect sight, after which voting system is better than another, so whether the scientists, the study turned to the lesser of two evils.
ARROW, the Nobel Prize winning work of “general equilibrium” (that is based on the theory of general equilibrium. Balance of price mechanism in bringing Markets is mathematically proved that all simultaneous manner. Thus, the social resources of market competition also proved that led in the right direction.
The problem of supply and demand for a single good of a well-functioning market, the number of goods is equal to the requested number of goods offered, pricing provides efficient results. But this is only a market. Other products, arable fields, agricultural workers, creates an array of factors that affect the market and even bank loans. Each market pushes and pulls the others. Can we predict how the interaction between all markets in the world? Arrow, Gerard Debreu, French economist, together with the intuition gained from the single market showed that they could genellesebi.First of all, there was a general balance supply and demand in each market prices synchronize. Second, this equilibrium was very active. And third, competitive markets through the acquisition of an efficient allocation of resources could be provided. Arrow’s analysis, the conditions for success are explained.
These theoretical studies as well as Arrow, areas of health insurance, climate change has contributed to many economic problems. Took an active part in political matters. Which warned of the dangers of global warming, “the Declaration of Economists on Climate Change” s (1997) one of the authors.
Arrow spent most of his life at the universities of Harvard and Stanford. In 1947 married Selma Schweitzer. In the name of David and Andrew had two sons. Sister Anita, a Nobel Prize-winning economist Paul Samuelson (1970) gene is a well-known economist who is she married his brother, Robert summers. Arrow’s niece, former U.S. Treasury Secretary Lawrence summers.
The Mask Eric Amartya Sen, “The Impossibility Theorem Arrow”, Columbia University Press,2014.