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Revealed public preference and social utility
Authors:Perry Shapiro
Abstract:Methods of demand theory are applied to the problem of the existence of a social welfare function under specific public choice algorithms. Integrability conditions, necessary for the derivation of social demand functions from utility maximization, are used. The social choice function, which chooses the mean of all voters demand for public goods to be the public provision, is analysed in detail. Necessary conditions for the existence of a social utility function, and by implication, a transative social ordering, are derived for this case. These conditions imply restrictions on individual preferences.
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