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Incomplete preferences, willingness to pay, and willingness to accept

Author

Listed:
  • Robert G. Chambers

    (University of Maryland
    University of Queensland)

  • Tigran Melkonyan

    (University of Alabama)

  • John Quiggin

    (University of Queensland)

Abstract

We derive representations of incomplete preferences in terms of willingness-to-pay measures. The paper demonstrates how these representations can be used to determine whether preferences are incomplete. We also study local approximations to incomplete preference structures and how attitudes to ambiguity affect willingness-to-pay measures.

Suggested Citation

  • Robert G. Chambers & Tigran Melkonyan & John Quiggin, 2022. "Incomplete preferences, willingness to pay, and willingness to accept," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(3), pages 727-761, October.
    • Handle: RePEc:spr:joecth:v:74:y:2022:i:3:d:10.1007_s00199-021-01375-4
    DOI: 10.1007/s00199-021-01375-4
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    Cited by:

    1. Dino Borie, 2023. "Expected utility in Savage’s framework without the completeness axiom," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(2), pages 525-550, August.

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    More about this item

    Keywords

    Incomplete preferences; Multiple priors; Translation function; Elicitation;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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