We analyze an alternative to the standard rationalizability requirement for observed choices by considering non-deteriorating selections. A selection function is a generalization of a choice function where selected alternatives may depend on a reference (or status quo) alternative in addition to the set of feasible options. A selection function is non-deteriorating if there exists an ordering over the universal set of alternatives such that the selected alternatives are at least as good as the reference option. We characterize non-deteriorating selection functions in an abstract framework and in an economic environment.
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Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number
2001-01.
Walter Bossert & Yves Sprumont, 2009.
"Non-Deteriorating Choice,"
Economica,
London School of Economics and Political Science, vol. 76(302), pages 337-363, 04.
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Find related papers by JEL classification: D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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