Arrow Specification Essay

Question:

What examples can you think of where it might be useful in your Organisation to aggregate preference judgements?

Answer:

As an Owner of the shop, the Arrow conditions which can be observed are-:

When the customer is offered diamond (A) & gold (B) & in between the options, he chooses a diamond. But when he is offered gold (B) or silver (C), he chooses gold. As a third option, when he is offered diamond (A) & silver, he chooses silver (C), which shows the condition of A>B, B>C & C>A. All these conditions, showcases the customer has certain preferences with the given money, the group can have choices in a certain manner but it is the individual within that group which has the transitive preference which fulfills the Arrow’s 1st condition.

The customer while shopping for various designs which are in gold, silver & diamond gets influenced by the choice of the salesman. This showcases that for the customer it is imperative to make choices while for the group to make decisions based on the given choices including customer behavior which fulfills the 2nd Arrow condition (Goodwin, 2014).

Customer while shopping for different designs in the gold, silver & diamond, orders 3rd option. After a while gets influenced & chooses the other option available, depicts that improving an option which can result in the choices from the group & reject the customer own choice which fulfills the 3rd condition.

There is no dictatorship or voting its just preferences which indicate that there is a group choice & not an individual preferred underlying choice which fulfills 4th condition of the Arrow (Morreau, 2016).

In my organization the example of the aggregation of preference in terms of the judgments when a group makes a decision related to selecting a party in a restaurant over the other set of group people while making alternative options available.

References

Morreau, M. 2016, ‘Arrow's Theorem’, The Stanford Encyclopedia of Philosophy, Winter Edition, Edward N. Zalta (ed.),
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Goodwin, P., Wright, G. 2014, Decision Analysis for Management Judgement, 5th edition, Chichester UK, Wiley.

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