According to Wiki, Arrow's Impossibility Theorem proves that we cannot create a social welfare function that obeys unanimity, non-dictatorship, and IIA.
However, in real elections, we want to choose just one candidate, rather than ranking them all. Let $f$ be a function that maps a ballot list B to a single ''best'' candidate. Does Arrow's Theorem imply that no $f$ can satisfy unanimity, non-dicatorship, and IIA?
I believe these are natural ways to extend the definitions of unanimity, non-dictatorship, and IIA precisely to a function that chooses a single ''best'' candidate:
- $f$ satisfies unanimity when each ballot prefers $a$ to $b$, then $f(B)\neq b$.
- $f$ satisfies non-dictatorship if $f$ does not simply return the top choice of some fixed voter.
- $f$ satisfies IIA if for any two ballot lists $B_1,B_2$ that have $a,b$ in the same relative positions, then $f(B_1)=a$ or $b$ implies that $f(B_2)=f(B_1)$.
I'm hoping that we can easily show that, e.g., the existence of such an $f$ would imply existence of a corresponding social welfare function $w$, e.g. by defining $w(C, B)$ such that $w(f(C, B)) > w(f(C-\{f(C, B)\}, B)) > \ldots$.
The answer to your question is provided by the Gibbard-Satterthwaite theorem, well known in the mechanism design literature. The theorem states
Actually, early proofs followed the strategy you are outlining and used the Arrow's theorem to prove the G-S theorem. Today, we have direct proofs (I rather like the Benoit (2000) but there are others as well) and we also have a better understanding that the two theorems are actually deeply connected. Reny (2001) provides a single proof of both theorems!
Edit:
To clarify, in the statement of the theorem, by social choice function is meant any function that chooses from the ballot list $B$ a single alternative $a$, i.e. the "best" candidate as you call it. By unanimity is meant something less restrictive then what you propose (but implied by your condition): if each ballot prefers $a$ to all other alternatives, then $a$ is chosen. Dictatorship is as you defined it. Strategyproof simply means that no voter wants to change her ballot $B_i$ given the ballots of all other voters $B_{-i}$. Or $f(B_i,B_{-i}) \succeq_if(\tilde{B}_i,B_{-i})$ for any permissible $\tilde{B}_i$.
Sources:
Benoıt, Jean-Pierre. "The Gibbard–Satterthwaite theorem: a simple proof." Economics Letters 69.3 (2000): 319-322.
Reny, Philip J. "Arrow’s theorem and the Gibbard-Satterthwaite theorem: a unified approach." Economics Letters 70.1 (2001): 99-105.