Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Business Management & Operations
  • Management, Leadership, & Organizational Behavior

Social Choice Theory - Explained

What is Social Choice Theory?

Written by Jason Gordon

Updated at April 8th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is Social Choice Theory?How does Social Choice Theory Work?

What is Social Choice Theory?

Social choice theory analyzes individual interests, opinions, and preferences and how they affect collective outputs and decisions. More specifically, this theory is a combination of economic models derived from the aggregation of individual judgments, inputs, preferences, and interests in arriving at collective decisions and judgments.

For a rule to be considered as a 'good rule', it must factor in the decisions, opinions, and judgments of individuals affected.

Back to: BUSINESS MANAGEMENT

How does Social Choice Theory Work?

The social spice theory was developed in 1951 by an Economist Kenneth Arrow in his book Social Choice and Individual Values.

According to Kenneth Arrow, a democratic society must reflect the choices and judgments of individuals when developing a role. The economist proposed five criteria that collective our society's choices must meet before they can reflect the preferences of individuals. They are:

  • Universality
  • Non-imposition
  • Non-dictatorship
  • Responsiveness
  • Independence of Irrelevant Alternatives.
social choice theory

Was this article helpful?

Yes
No

Related Articles

  • Blake and Mouton's Leadership Model (Managerial Grid) - Explained
  • Group Cohesion - Explained
  • Business Process Management - Explained
  • Equity Theory of Motivation - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand