Abstract

The voting paradox occurs when a democratic society seeking to aggregate individual preferences into asocialpreference reaches an intransitive ordering. However it is not widely known that the paradox may also manifest for anindividualaggregating over attributes of risky objects to form a preference over those objects. When this occurs, the relation ‘stochastically greater than’ is not always transitive and so transitivity need not hold between those objects. We discuss the impact of other decision paradoxes to address a series of philosophical and economic arguments against intransitive (cyclical) choice, before concluding that intransitive choices can be justified.