Optimum Inducements In Social Menus: The Paradox Of Arrows Impossibility Theorem

Abstract

This article develops combinatorial theory. The utility of an individual depends on the nature of the goods and, in essence, on the way they are arranged within the subset of consumption or, in other words, the manner in which they are combined. An individual may transitorily construct a scale of utilities or preferred social menus but it is impossible, or nearly impossible, to construct a social menu. By the use of inducements we can get close to the best possible menu, which will always differ from the best individual menu.