The Pazner-Schmeidler Social Ordering: A Defense

Abstract

It is shown that the Pazner-Schmeidler social ordering appears as a very natural solution to the problem of defining social preferences over distributions of a fixed bundle of divisible goods. The paper follows an approach to preference aggregation which relies only on interpersonally non-comparable preferences, and circumvents Arrow's impossibility by taking account of the shape of indifference curves. Social preferences can then be constructed and justified with fairness principles.social welfare, social choice, fairness, egalitarian-equivalencesocial welfare, public choice