The liberal paradox, also Sen paradox or Sen's paradox, is a logical paradox proposed by Amartya Sen which shows that no means of aggregating individual preferences into a single, social choice, can simultaneously fulfill the following, seemingly mild conditions:
Sen's result shows that this is impossible. The three, rather minimalistic, assumptions cannot all hold together. The paradox—more properly called a proof of contradiction, and a paradox only in the sense of informal logic—is contentious because it appears to contradict the classical liberal idea that markets are both Pareto-efficient and respect individual freedoms.[1][2][3]
Sen's proof, set in the context of social choice theory, is similar in many respects to Arrow's impossibility theorem and the Gibbard–Satterthwaite theorem. As a mathematical construct, it also has much wider applicability: it is essentially about cyclical majorities between partially ordered sets, of which at least three must participate in order to give rise to the phenomenon. Since the idea is about pure mathematics and logic, similar arguments abound much further afield. They, for example, lead to the necessity of the fifth normal form in relational database design. The history of the argument also goes deeper, Condorcet's paradox perhaps being the first example of the finite sort.