By George R. Feiwel
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Extra info for Arrow and the Ascent of Modern Economic Theory
While he does not dwell on the details of consumption, he is concerned with the characteristics of productive effort (ability and schooling). There is much to Keynes's argument that economic theory does not provide a body of settled conclusions immediately applicable to policy; rather it is a mode of reasoning that helps the possessor to draw the correct conclusions. Part III encompasses contribution& to themes that have pervaded Arrow's economic thought and writings, but that have not been at the heart of his theoretical innovations.
Sheshinski, H. A. Simon, A. M. Spence, L. Summers and M. Weitzman were very helpful and their good advice and encouragement are deeply appreciated. I hope it will not be taken amiss if I thank collectively the many participants of the IMSSS summer economic seminars at Stanford for fruitful discussions over a Preface liii number of years. Such anonymity, however, cannot apply to the dynamic M. Kurz or to the perennial enfant-terrible-in-residence, F. H. Hahn. It is with much gratitude that I acknowledge the very beneficial and stimulating interchanges with G.
This provides him, inter alia, a reason to doubt the attractiveness of the familiar axiom of Independence of Irrelevant Alternatives. In Chapter 4 Hammond takes up the challenge of Arrow's social choice paradox, suggesting that it may not be insoluble. His approach involves using cardinalization of both individual and social welfare measures based on behaviour in risk-taking situations. He argues that this approach can be justified by analyzing sequential decisions in decision trees. The major part of this chapter proceeds through several logical steps to derive a form of utilitarianism closely akin to Vickrey and, more especially Harsanyi, while the latter part considers how the contradictory postulates of Arrow's Impossibility Theorem can be modified to accommodate this form of utilitarianism.
Arrow and the Ascent of Modern Economic Theory by George R. Feiwel