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Social diversification, injustices, and Pareto optimality with non-binary preferences

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  • Berdellima, Arian
  • Naqvi, Nadeem

Abstract

We prove the existence of a Pareto optimal state of a finite society that has socially differentiated persons, each with non-binary personal preferences that quasi-order a finite set of alternatives. Everybody engages in a volitional act of choice by maximization of non-binary preferences. As a consequence of interpersonal interaction among social creatures, the social interaction outcome defined as belonging to a nonempty social maximal set exists, and thus is Pareto optimal. Injustices inflicted by one group of persons upon a socially distinct one, arising from social diversification, are, however, consistent with such a collective outcome. (95 words)

Suggested Citation

  • Berdellima, Arian & Naqvi, Nadeem, 2012. "Social diversification, injustices, and Pareto optimality with non-binary preferences," MPRA Paper 39201, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39201
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    References listed on IDEAS

    as
    1. Naqvi, Nadeem, 2010. "On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination," MPRA Paper 21522, University Library of Munich, Germany.
    2. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    3. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    non-binary choice; maximization; Pareto optimality; social identity; justice; discrimination;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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