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Freedom of choice: the leximax criterion in economic environments

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Author Info
Ritxar Arlegi () (Departamento de Economía-UPNA)
Manuel Besada (Universidad de Vigo)
Jorge Nieto () (Departamento de Economía-UPNA)
Carmen Vázquez () (Universidad de Vigo)
Abstract

Many recent works have investigated the question of extending a preference over a set of alternatives to its power set, as a way to provide a formal representation of the notion of freedom of choice. In general, the results are limited to the nite case, which excludes the case of economic environments. This paper deals with the possibility of extending those results to the context where the basic set of alternatives is the n-dimensional Euclidean space. We present an extension of the leximax criterion of Bossert, Pattanaik and Xu (1994) on this more general framework. This characterization result opens the possibility of application of the literature on freedom of choice to standard economic environments.

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Paper provided by Departamento de Economía - Universidad Pública de Navarra in its series Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra with number 0009.

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Length: 10 pages
Date of creation: 2000
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Publication status: Published in
Handle: RePEc:nav:ecupna:0009

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  1. Kreps, David M, 1979. "A Representation Theorem for "Preference for Flexibility"," Econometrica, Econometric Society, vol. 47(3), pages 565-77, May. [Downloadable!] (restricted)
  2. Bossert Walter & Pattanaik Prasanta K. & Xu Yongsheng, 1994. "Ranking Opportunity Sets: An Axiomatic Approach," Journal of Economic Theory, Elsevier, vol. 63(2), pages 326-345, August. [Downloadable!] (restricted)
  3. Sen, Amartya, 1988. "Freedom of choice : Concept and content," European Economic Review, Elsevier, vol. 32(2-3), pages 269-294, March. [Downloadable!] (restricted)
  4. Sen, A., 1991. "Markets And Freedoms," Harvard Institute of Economic Research Working Papers 1559, Harvard - Institute of Economic Research.
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