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- Title
EXTERNALITIES AS A NECESSARY CONDITION FOR CYCLICAL SOCIAL PREFERENCES.
- Authors
Bernholz, Peter
- Abstract
Cyclical social preferences in decentralized non-oligarchic societies are a consequence of the existence of three or more different winning coalitions with no member of society in common. I have shown that externalities are a necessary condition for the presence of cyclical social preferences and are, therefore, the reason for the validity of the General Impossibility Theorem, the Paradox of Liberalism (more generally, of decentralized systems) and of Pareto inferior solutions. A short discussion of the definition of externalities concludes the paper.
- Subjects
DECENTRALIZATION in management; COALITIONS; INTERNATIONAL alliances; IMPOSSIBILITY of performance; LIBERALISM
- Publication
Quarterly Journal of Economics, 1982, Vol 97, Issue 4, p699
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1885107