Sen's Theorem and Externalities
In: Economica, Band 64, Heft 255, S. 375-386
ISSN: 1468-0335
When the outcome space X is a product set, the Paretian‐liberal conflict depends on a special cycle of externalities. Even if the society is countably infinite, the inconsistency vanishes if the individuals can be numbered so that person i does not care about the actions of any h<i, although we assume that the liberal constraint is binding only on finite coalitions.