Arrow’s General Impossibility Theorem and Five Collective Choice Rules: Pareto, Condorcet, Plurality, Approval Voting, and Borda

Abstract

Collective choice rules are used to aggregate individual preferences among alternatives in order to determine group preference. Marketers frequently measure and aggregate customer preferences for product design. They have traditionally used aggregation rules like the plurality method, the Condorcet method, approval voting, the Borda method, and the utilitarian method. While marketers have extensively utilized these rules, only recently have they paid some attention to the strengths and weaknesses of these rules. Arrow has investigated the desirable properties of aggregation rules. This article presents Arrow’s conditions that a desirable preference aggregation method should satisfy and his “General Impossibility Theorem.” Five methods of preference aggregation are then evaluated in the light of Arrow’s theorem.