Arrow’s impossibility theorem vs May’s theorem in Economics - What is The Difference?

Last Updated Feb 14, 2025

May's theorem establishes that majority rule is the only voting system satisfying anonymity, neutrality, and positive responsiveness for two alternatives. This foundational result in social choice theory highlights the fairness criteria necessary for collective decision-making. Explore the rest of the article to understand May's theorem implications on voting fairness and collective choice.

Table of Comparison

Aspect May's Theorem Arrow's Impossibility Theorem
Field Social choice theory, voting systems Social choice theory, welfare economics
Focus Majority rule characterization Impossibility of a perfect social welfare function
Core Statement Majority rule is the unique fair decision rule for two alternatives No voting system satisfies all fairness criteria simultaneously for three or more alternatives
Number of Alternatives Two alternatives Three or more alternatives
Key Conditions Anonymous, neutral, and monotonic voting rule Non-dictatorship, Pareto efficiency, independence of irrelevant alternatives, unrestricted domain
Implication Justifies majority rule as fair Highlights trade-offs in collective decision-making mechanisms
Named After Kenneth May (1952) Kenneth Arrow (1951)

Introduction: Understanding Voting System Theorems

May's theorem establishes conditions for majority rule to be the unique fair voting system in two-candidate elections, emphasizing properties like anonymity, neutrality, and positive responsiveness. Arrow's impossibility theorem generalizes the challenge to collective decision-making by proving no rank-order voting system can simultaneously satisfy unrestricted domain, non-dictatorship, Pareto efficiency, and independence of irrelevant alternatives when there are three or more options. Understanding these foundational theorems reveals inherent limitations and trade-offs in designing fair and consistent voting systems across different election scenarios.

Overview of May’s Theorem

May's Theorem provides a formal characterization of majority rule in the context of binary elections, stating that majority voting is the only decision rule satisfying anonymity, neutrality, and positive responsiveness. It applies to situations with two alternatives and ensures a fair and consistent aggregation of preferences without favoritism toward any voter or option. This theorem contrasts with Arrow's Impossibility Theorem, which addresses preference aggregation in elections with three or more alternatives and highlights the inherent challenges in designing a voting system that meets all fairness criteria simultaneously.

Key Principles Behind May’s Theorem

May's Theorem centers on the key principles of anonymity, neutrality, and positive responsiveness in majority voting systems, asserting that a fair decision rule must treat all voters equally, all alternatives symmetrically, and respond to changes in individual preferences by favoring a chosen option. Unlike Arrow's Impossibility Theorem, which deals with social welfare functions and multiple alternatives, May's Theorem explicitly characterizes majority voting as the unique decision rule satisfying these fairness criteria for two alternatives. This theorem underlines the foundational fairness constraints that shape democratic choice under binary decisions, emphasizing equal influence and consistent collective responses.

Arrow’s Impossibility Theorem Explained

Arrow's Impossibility Theorem demonstrates the inherent difficulties in creating a social choice function that simultaneously satisfies unrestricted domain, non-dictatorship, Pareto efficiency, and independence of irrelevant alternatives when aggregating individual preferences into a collective decision. Unlike May's theorem, which provides conditions for fair majority voting in a binary choice setting, Arrow's theorem applies to any voting system with three or more options, revealing fundamental trade-offs in fairness and rationality criteria. This theorem highlights the challenges in designing a perfect voting system, emphasizing the impossibility of meeting all reasonable fairness conditions simultaneously.

Core Conditions of Arrow’s Theorem

Arrow's impossibility theorem is centered on the core conditions of unrestricted domain, Pareto efficiency, independence of irrelevant alternatives, and non-dictatorship, which together demonstrate the impossibility of a perfect voting system that converts individual preferences into a collective decision without contradictions. May's theorem, on the other hand, specifically addresses binary choice scenarios with conditions such as anonymity, neutrality, and positive responsiveness, ensuring a majority rule as the unique decision rule satisfying these criteria. The fundamental divergence lies in Arrow's broader multidimensional preference context versus May's focus on two-option majority voting systems.

Comparing May’s and Arrow’s Assumptions

May's theorem assumes a binary choice setting with three key axioms: anonymity, neutrality, and positive responsiveness, ensuring a majority rule is both fair and decisive. Arrow's impossibility theorem operates on broader preferences in voting systems, relying on five conditions including unrestricted domain, non-dictatorship, Pareto efficiency, independence of irrelevant alternatives, and transitivity. The critical difference lies in May's focus on two-candidate majority decisions, while Arrow addresses multi-candidate social choice rules under more complex preference structures.

Implications for Social Choice Theory

May's theorem establishes conditions for majority rule to be a fair and decisive social choice mechanism in two-choice settings, emphasizing symmetry and decisiveness. Arrow's impossibility theorem demonstrates that no rank-order voting system can simultaneously satisfy unrestricted domain, non-dictatorship, Pareto efficiency, and independence of irrelevant alternatives in three or more options. Together, these theorems highlight fundamental constraints in social choice theory, guiding the design and evaluation of voting systems and collective decision-making processes.

Strengths and Limitations of May’s Theorem

May's theorem provides a clear and elegant characterization of majority rule within binary voting systems, emphasizing simplicity, anonymity, neutrality, and positive responsiveness. Its strength lies in guaranteeing a fair and consistent decision-making mechanism for two alternatives, making it highly applicable to referendums and binary choices. However, the theorem is limited by its focus on only two options, making it inapplicable to more complex preference aggregation scenarios addressed by Arrow's impossibility theorem.

Arrow’s Theorem: Impact and Criticisms

Arrow's Impossibility Theorem reveals fundamental limitations in social choice theory by proving no voting system can convert individual preferences into a collective decision without violating fairness criteria, unlike May's theorem which applies to simpler majority rules for two alternatives. The theorem's impact extends to economics, political science, and welfare theory, questioning the feasibility of a perfectly fair voting system. Critics argue Arrow's assumptions are too stringent and practical voting methods often tolerate minor violations to achieve workable outcomes.

Conclusion: May vs Arrow—Insights for Modern Voting Systems

May's theorem establishes criteria for a fair majority voting system in two-candidate elections, emphasizing properties like anonymity, neutrality, and positive responsiveness that guarantee a simple majority rule. Arrow's impossibility theorem reveals the inherent limitations of aggregating individual preferences in multi-candidate elections, proving that no voting system can simultaneously satisfy all fairness criteria such as non-dictatorship, Pareto efficiency, and independence of irrelevant alternatives. Together, these theorems highlight the feasibility of majority rule in binary choices while exposing the complexity and trade-offs involved in designing equitable voting systems for multiple candidates.

May’s theorem Infographic

Arrow’s impossibility theorem vs May’s theorem in Economics - What is The Difference?


About the author. JK Torgesen is a seasoned author renowned for distilling complex and trending concepts into clear, accessible language for readers of all backgrounds. With years of experience as a writer and educator, Torgesen has developed a reputation for making challenging topics understandable and engaging.

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