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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Statements (48)

Predicate Object
instanceOf impossibility result
paradox in welfare economics
result in social choice theory
assumption Pareto principle is applied to social states NERFINISHED
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 NERFINISHED
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 NERFINISHED
publishedIn The Review of Economic Studies NERFINISHED
relatedConcept Arrow’s impossibility theorem NERFINISHED
Pareto efficiency NERFINISHED
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