Symmetric Combination With Leviathan Combinatorial Theory Applied To Public Choice

Abstract

Utility or welfare depend on the number of goods consumed, the variety of such goods and particularly in what order they are consumed from a temporal perspective, i.e. how they are combined. This is our starting point, which is new to economic science. We apply the combinatorial theory to the theory of consumption. Depending on the number of combinations we will obtain different levels of utility.  Leviathan is present in our market offering a set of goods, as well as the citizens who seek a beneficial combination. The citizens have to negotiate with Leviathan. But before that they must reach an agreement among themselves. Leviathan knows his combination but the citizens don’t. This results in an asymmetric information situation.