Does market coordination lead to justice or to strict efficiency in Social Choice and Individual Values?

The paper tries to clarify the status of the market in Social Choice and Individual Values. It shows how Arrow at first intended to propose a third theorem of welfare economics (Feldman [1991]), which would show that the market achieves not only Pareto-optimality, but also equitable social allocations. The impossibility theorem proves this is impossible. Arrow’s solution to impossibility is interpreted here as a further limitation of the market’s objectives. At the end of the book, the market is presented as a technical mechanism that guarantees economic efficiency, if it doesn’t take individual values into consideration.