Sen’s liberal paradox

E494085

Sen’s liberal paradox is a result in social choice theory showing that even minimal individual rights can be incompatible with always achieving Pareto-efficient collective decisions.

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Sen’s liberal paradox canonical 1

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Statements (48)

Predicate Object
instanceOf impossibility result ⓘ
paradox in welfare economics ⓘ
result in social choice theory ⓘ
assumption Pareto principle is applied to social states ⓘ
linked to: Pareto efficiency

at least three social states are available ⓘ
at least two individuals exist in the society ⓘ
individual rights are modeled as decisive power over certain personal choices ⓘ
individuals have preferences over social states ⓘ
preferences are complete and transitive ⓘ
social choice rule aggregates individual preferences into a social ordering ⓘ
social preference relation is complete and transitive ⓘ
author Amartya Sen ⓘ
category economic paradox ⓘ
impossibility theorem in social choice ⓘ
philosophical paradox ⓘ
contrastsWith utilitarian approaches that ignore individual rights as constraints ⓘ
coreClaim even minimal individual rights can conflict with Pareto efficiency ⓘ
no social decision rule can simultaneously satisfy minimal liberalism and unrestricted Pareto efficiency under its assumptions ⓘ
field political philosophy ⓘ
social choice theory ⓘ
welfare economics ⓘ
formalizes conflict between personal liberty and social welfare maximization ⓘ
tension between individual rights and collective rationality ⓘ
hasImplication complete respect for individual liberties may be incompatible with standard welfare criteria ⓘ
design of constitutions and decision procedures must trade off rights and efficiency ⓘ
illustratedBy examples where individuals have decisive control over personal choices that affect others ⓘ
incompatibilityBetween Pareto efficiency ⓘ
minimal liberalism ⓘ
influenced debates on liberalism and paternalism ⓘ
subsequent work on social choice with rights ⓘ
theory of rights in economics ⓘ
motivated research on alternative formulations of rights and liberties ⓘ
research on domain restrictions to avoid the paradox ⓘ
namedAfter Amartya Sen ⓘ
publishedIn The Review of Economic Studies ⓘ
relatedConcept Arrow’s impossibility theorem ⓘ
Pareto efficiency ⓘ
collective choice ⓘ
minimal liberalism ⓘ
rights-based liberalism ⓘ
social welfare function ⓘ
showsThat granting individuals decisive control over some choices can force socially Pareto-inferior outcomes ⓘ
no social decision rule can fully respect both minimal liberty and Pareto efficiency under its framework ⓘ
respecting minimal individual rights may require violating Pareto principle ⓘ
typicalExampleFeatures Pareto-superior outcome that violates someone’s right ⓘ
at least one private decision for which each individual has decisive authority ⓘ
two individuals with preferences over each other’s actions ⓘ
yearProposed 1970 ⓘ

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Arrow’s impossibility theorem → relatedTo → Sen’s liberal paradox ⓘ