Social Choice Theory

Dictionary Says

Definition of 'Social Choice Theory'


Individual preferences are aggregated to produce a social welfare function - essentially a preference ranking of the scenarios that are possible to society. Social choice theory is the philosophical and mathematical study of the type of conclusions that can determined through various aggregation methods.

Investopedia Says

Investopedia explains 'Social Choice Theory'


Using different metric such as interests, values and welfare, social choice theory aims to determine the optimal rules of structuring a fair voting framework. Social choice theory is a growing discipline started by Kenth Arrow who originated the study following his introduction of the impossibility theorem in 1951. This theory is applicable to group decision making, negotiations and other economic processes.



comments powered by Disqus
Hot Definitions
  1. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  2. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center