Qiaochu_Yuan comments on Godel's Completeness and Incompleteness Theorems - Less Wrong
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No, the details are very different from range voting. You still only allow each voter to pick one candidate, and the ultrafilter provides a (highly nonconstructive) way of distilling all of these votes into a winner of the election. You can get a feel for how this works by reading about what Terence Tao calls an adaptive oracle. Roughly speaking, you can arbitrarily choose winners subject to consistency with your previous choices and with the conditions in Arrow's theorem, and the freedom of having infinitely many voters ensures that this process won't lead to a contradiction.
In a certain sense, "ultrafilter voting" is still controlled by a sort of "virtual dictator," so even conceptually this isn't a strong blow to Arrow's theorem, and in practice "ultrafilter voting" is useless because you can't write down (non-principal) ultrafilters explicitly.