Theorem Arrow's Impossibility Theorem
theorem staged

Arrow's Impossibility Theorem

Theorem (Arrow 1951). Let $N$ be a finite nonempty population and $A$ a finite alternative set with $|A| \ge 3$. Every social welfare function $F$ ([[social_choice.voting.swf]]) satisfying

  • unanimity ([[social_choice.voting.unanimity]]) and
  • independence of irrelevant alternatives ([[social_choice.voting.iia]])

is dictatorial ([[social_choice.voting.dictatorial_swf]]).

In Lean: SocialChoice.Voting.arrow_impossibility, with signature [Fintype A] [Fintype N] [Nonempty N] (hA : Fintype.card A ≥ 3).

Proof

The public theorem packages the cardinality hypothesis: a finite alternative set with at least three elements contains three distinct alternatives $x, y, z$ (via Fintype.equivFin), which is the witness shape consumed by the decisive-coalitions form [[social_choice.voting.arrow_of_unanimity_iia]]. Apply that theorem to conclude. $\square$

Interpretation

If one insists on aggregating individual rankings into a single social ranking that (i) respects unanimity and (ii) does not let society's $\{a,b\}$ ranking depend on irrelevant alternatives, then the only admissible rules with three or more alternatives are dictatorships — one agent fully determines society's strict preference. Three classical escapes are: weaken to a social choice function (Gibbard–Satterthwaite is the SCF analogue, [[social_choice.voting.gibbard_satterthwaite]]); restrict the preference domain (e.g. single-peaked); or move from ordinal to cardinal / probabilistic aggregation.

References

  • [MSZ 21.10] Maschler, Solan, and Zamir, Game Theory. Arrow's impossibility theorem.
  • Arrow, K. J. (1951). Social Choice and Individual Values.

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