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Additive representation for preferences over menus in finite choice settings

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  • Leandro Gorno

    (Princeton University)

Abstract

This paper proves that every preference relation over the set of all menus from a finite set has an additive representation. The result implies that Kreps ordinal submodularity condition is not needed when both preferences for flexibility and preference for commitment are permitted. It is also shown that any preference over menus from a finite set can be extended to a linear and continuous preference over menus of lotteries. It follows that the von Neumann-Morgenstern assumptions of the Dekel-Lipman-Rustichini model are inessential for the additive representation of menu preferences.

Suggested Citation

  • Leandro Gorno, 2010. "Additive representation for preferences over menus in finite choice settings," Working Papers 1292, Princeton University, Department of Economics, Econometric Research Program..
    • Handle: RePEc:pri:metric:wp003_2011_gorno.pdf
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    File URL: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.445.1706&rep=rep1&type=pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Dynamic choice; Preference for flexibility; Preference for commitment;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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