Measures of inequality as an aggregation of individual preferences about income distribution: The Arrowian case (Q1094302): Difference between revisions

An inequality preorder is a preorder on a simplex which satisfies symmetry and strict Schur-convexity (the mathematical equivalent of the principle of transfers of Pigou and Dalton). It is shown that we cannot aggregate individual inequality preorders to a collective one if we are interested in Arrow's aggregation rules. The proof uses an interesting result of \textit{E. Kalai, E. Muller} and \textit{M. Satterthwaite} [Public Choice 34, 87-97 (1979)]. Moreover, we prove further results for the aggregation of individual inequality indices when we allow cardinality and interpersonal comparibility of utility.