Arrow's impossibility theorem

Modigliani and Miller (1958) provided a new theory of capital structure, suggesting that a firm’s choice between debt and equity has no impact on the firm’s value. This became known as irrelevance theorem. However, this theory is surrounded by a number of assumptions that can be analyzed in turn. The first assumption from Modigliani and Miller (1958) is that firms operate within a perfect capital market. The perfect capital market is defined by Fabozzi, Neave and Zhou (2012, p 87). Firstly,…

I ask myself this question while I read Terry Tempest Williams “A Shark in the mind of one contemplating wilderness” I try to comprehend what Damien Hirst is trying to evoke from the eyes and minds viewing his “sculpture” titled “the physical impossibility of death in the mind of someone living” (williams 570). Hirst states “I like ideas of trying to understand the world by taking things out of the world.”(williams 570). Terry Tempest Williams dissects whether a shark can be considered art if…

application of mathematics to economic analysis. Pareto’s theories and research have been discussed several times in Praxis with several different applications, including the Pareto Chart, the Pareto Principle, and Pareto Efficiency (relating to Arrow’s Impossibility Theorem and Pairwise Comparison Matrices). The connections between these topics and their limitations, however, are not developed in class. Pareto Charts and Pareto Analysis The first mention of Pareto occurred in Lecture 11, when…

Question 1 Which of the following is a good example of a congestible public good? Question 2 A baseball field is: Question 3 A means of creating a price-excludable public good is: Question 4 An example of an undesirable public good (or public “bad”) is: Question 6 The marginal cost of making a given quantity of a congestible public good available to more con­sumers is: Question 7 Public transportation is: Question 8 The efficient output of a pure public…

Nash equilibrium in this game? a. Up-Right b. Up-Left c. Down-Right d. Down-Left 8. The Condorcet paradox a. proved that the Arrow impossibility theorem is wrong. b. was proved wrong by the Arrow impossibility theorem. c. serves as an example of the Arrow impossibility theorem. d. pertains to voting systems, whereas Arrow's Impossibility Theorem does not. 9. When each voter has a most-preferred outcome for the expenditure on a particular government program, majority rule…

transaction. This provides an incentive for sale of goods of lower quality since the consumer cannot tell the difference. Information asymmetry is thus key in getting an upper hand in economic transactions. The Condorcet Paradox and Arrow's Impossibility Theorem in the Political…

Innovation Diffusion Theory Diffusion of Innovation (DOI) Theory is one of the most established sociology hypotheses which is produced by E.M. Rogers in 1962. It began in correspondence to clarify how, after some time, a thought or item picks up energy and spreads through a particular populace or social framework. The final aftereffect of this dispersion is that individuals, as a feature of a social framework, receive another thought, conduct, or item. Appropriation implies that a man…

Scholars test the efficacy of voting systems through the voting system criteria, a list of mathematically desirable characteristics of voting systems. Although Nobel laureate Kenneth Arrow’s impossibility theorem demonstrates that no voting system can be perfect, it is significant that instant runoff voting fails nearly a third of the 19 criteria, six to be specific. Of particular note is the failure to pass the monotonicity criterion and the participation…