Contraction consistent stochastic choice correspondence
AbstractWe model a general choice environment via probabilistic choice correspondences, with (possibly) incomplete domain and infinite universal set of alternatives. We offer a consistency restriction regarding choice when the feasible set contracts. This condition, ‘contraction consistency’, subsumes earlier notions such as Chernoff’s Condition, Sen’s a and ß, and regularity. We identify a restriction on the domain of the stochastic choice correspondence, under which contraction consistency is equivalent to the weak axiom of revealed preference in its most general form. When the universal set of alternatives is finite, this restriction is also necessary for such equivalence. Analogous domain restrictions are also identified for the special case where choice is deterministic but possibly multi-valued. Results due to Sen (Rev Econ Stud 38: 307-317, 1971) and Dasgupta and Pattanaik (Econ Theory 31: 35-50, 2007) fall out as corollaries. Thus, conditions are established, under which our notion of consistency, articulated only in reference to contractions of the feasible set, suffices as the axiomatic foundation for a general revealed preference theory of choice behaviour.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Nottingham, School of Economics in its series Discussion Papers with number 08/04.
Date of creation:
Date of revision:
Contact details of provider:
Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
More information through EDIRC
Stochastic choice correspondence; Contraction consistency; Regularity; Chernoff’s condition; Weak axiom of revealed preference; Weak axiom of stochastic revealed preference; Complete domain; Incomplete domain.;
Other versions of this item:
- Indraneel Dasgupta, 2011. "Contraction consistent stochastic choice correspondence," Social Choice and Welfare, Springer, vol. 37(4), pages 643-658, October.
- Dasgupta, Indraneel, 2009. "Contraction Consistent Stochastic Choice Correspondence," IZA Discussion Papers 4596, Institute for the Study of Labor (IZA).
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Indraneel Dasgupta, .
"Revealed Preference with Stochastic Demand Correspondence,"
07/06, University of Nottingham, School of Economics.
- Dasgupta Indraneel & Pattanaik P. K, 2010. "Revealed Preference with Stochastic Demand Correspondence," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-21, August.
- Daniel McFadden, 2005. "Revealed stochastic preference: a synthesis," Economic Theory, Springer, vol. 26(2), pages 245-264, 08.
- Bandyopadhyay, Taradas & Dasgupta, Indraneel & Pattanaik, Prasanta K., 1999. "Stochastic Revealed Preference and the Theory of Demand," Journal of Economic Theory, Elsevier, vol. 84(1), pages 95-110, January.
- Barbera, Salvador & Pattanaik, Prasanta K, 1986. "Falmagne and the Rationalizability of Stochastic Choices in Terms of Random Orderings," Econometrica, Econometric Society, vol. 54(3), pages 707-15, May.
- Dasgupta, Indraneel, 2009.
"Supply Theory sans Profit-Maximization,"
IZA Discussion Papers
4018, Institute for the Study of Labor (IZA).
- Indraneel Dasgupta & Prasanta Pattanaik, 2007. "‘Regular’ choice and the weak axiom of stochastic revealed preference," Economic Theory, Springer, vol. 31(1), pages 35-50, April.
- Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-73, July.
- José Alcantud, 2006. "Notes and Comments: Stochastic demand correspondences and their aggregation properties," Decisions in Economics and Finance, Springer, vol. 29(1), pages 55-69, 05.
- Nandeibam, Shasikanta, 1996. "Coalitional Power Structure in Stochastic Social Choice Functions with an Unrestricted Preference Domain," Journal of Economic Theory, Elsevier, vol. 68(1), pages 212-233, January.
- Sen, Amartya K, 1971. "Choice Functions and Revealed Preference," Review of Economic Studies, Wiley Blackwell, vol. 38(115), pages 307-17, July.
- Indraneel Dasgupta, 2005. "Consistent firm choice and the theory of supply," Economic Theory, Springer, vol. 26(1), pages 167-175, 07.
- Bandyopadhyay, Taradas & Bandyopadhyay, Bandyopadhyay & Pattanaik, Prasanta K., 2002. "Demand Aggregation and the Weak Axiom of Stochastic Revealed Preference," Journal of Economic Theory, Elsevier, vol. 107(2), pages 483-489, December.
- Pattanaik, Prasanta K & Peleg, Bezalel, 1986. "Distribution of Power under Stochastic Social Choice Rules," Econometrica, Econometric Society, vol. 54(4), pages 909-21, July.
- WILLIAM J. McCAUSLAND, 2009. "Random Consumer Demand," Economica, London School of Economics and Political Science, vol. 76(301), pages 89-107, 02.
- Shasikanta Nandeibam, 2008. "A note on the structure of stochastic social choice functions," Social Choice and Welfare, Springer, vol. 30(3), pages 447-455, April.
- Shasikanta Nandeibam, 2003. "Distribution of coalitional power in randomized multi-valued social choice," Social Choice and Welfare, Springer, vol. 20(1), pages 3-25.
- Taradas Bandyopadhyay & Indraneel Dasgupta & Prasanta Pattanaik, 2004. "A general revealed preference theorem for stochastic demand behavior," Economic Theory, Springer, vol. 23(3), pages 589-599, March.
- Jan Heufer, 2011.
"Stochastic revealed preference and rationalizability,"
Theory and Decision,
Springer, vol. 71(4), pages 575-592, October.
- Jan Heufer, 2008. "Stochastic Revealed Preference and Rationalizability," Ruhr Economic Papers 0070, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.