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Topological connectedness and behavioral assumptions on preferences: a two-way relationship

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  • M. Ali Khan

    (Johns Hopkins University)

  • Metin Uyanık

    (University of Queensland)

Abstract

This paper offers a comprehensive treatment of the question as to whether a binary relation can be consistent (transitive) without being decisive (complete), or decisive without being consistent, or simultaneously inconsistent or indecisive, in the presence of a continuity hypothesis that is, in principle, non-testable. It identifies topological connectedness of the (choice) set over which the continuous binary relation is defined as being crucial to this question. Referring to the two-way relationship as the Eilenberg–Sonnenschein (ES) research program, it presents four synthetic, and complete, characterizations of connectedness and its natural extensions and two consequences that stem from it. The six theorems make connections that have eluded decision theory and thereby generalize the pioneering work of Eilenberg, Sonnenschein, Schmeidler and Sen. We draw the relevance to several applied contexts, as well as to ongoing theoretical work.

Suggested Citation

  • M. Ali Khan & Metin Uyanık, 2021. "Topological connectedness and behavioral assumptions on preferences: a two-way relationship," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(2), pages 411-460, March.
    • Handle: RePEc:spr:joecth:v:71:y:2021:i:2:d:10.1007_s00199-019-01206-7
    DOI: 10.1007/s00199-019-01206-7
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    Cited by:

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    2. M. Ali Khan & Metin Uyanik, 2021. "The Yannelis–Prabhakar theorem on upper semi-continuous selections in paracompact spaces: extensions and applications," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 799-840, April.
    3. Uyanik, Metin & Khan, M. Ali, 2022. "The continuity postulate in economic theory: A deconstruction and an integration," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    4. Aniruddha Ghosh & M. Ali Khan & Metin Uyanık, 2023. "Continuity postulates and solvability axioms in economic theory and in mathematical psychology: a consolidation of the theory of individual choice," Theory and Decision, Springer, vol. 94(2), pages 189-210, February.
    5. Wakker, Peter P. & Yang, Jingni, 2021. "Concave/convex weighting and utility functions for risk: A new light on classical theorems," Insurance: Mathematics and Economics, Elsevier, vol. 100(C), pages 429-435.
    6. Abdellaoui, Mohammed & Wakker, Peter P., 2020. "Savage for dummies and experts," Journal of Economic Theory, Elsevier, vol. 186(C).

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    More about this item

    Keywords

    k-Connected; k-Non-triviality; Complete; Transitive; Fragile; Flimsy;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D00 - Microeconomics - - General - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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