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Supermodularity and preferences

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  • Chambers, Christopher P.
  • Echenique, Federico

Abstract

We uncover the complete ordinal implications of supermodularity on finite lattices under the assumption of weak monotonicity. In this environment, we show that supermodularity is ordinally equivalent to the notion of quasisupermodularity introduced by Milgrom and Shannon. We conclude that supermodularity is a weak property, in the sense that many preferences have a supermodular representation.

Suggested Citation

  • Chambers, Christopher P. & Echenique, Federico, 2009. "Supermodularity and preferences," Journal of Economic Theory, Elsevier, vol. 144(3), pages 1004-1014, May.
    • Handle: RePEc:eee:jetheo:v:144:y:2009:i:3:p:1004-1014
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    References listed on IDEAS

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    Cited by:

    1. Ennio Bilancini, 2010. "On the Rationalizability of Observed Consumers Choise when Prefeerences else," Department of Economics 0636, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    2. Jean-Pierre H. Dubé, 2018. "Microeconometric Models of Consumer Demand," NBER Working Papers 25215, National Bureau of Economic Research, Inc.
    3. Alain Chateauneuf & Vassili Vergopoulos & Jianbo Zhang, 2018. "Infinite Supermodularity and Preferences," Chapters, in: Danijela Tuljak-Suban (ed.), Game Theory - Applications in Logistics and Economy, IntechOpen.
    4. Ennio Bilancini, 2011. "On the rationalizability of observed consumers’ choices when preferences depend on budget sets and (potentially) on anything else," Journal of Economics, Springer, vol. 102(3), pages 275-286, April.
    5. Christopher P Chambers & Federico Echenique, 2021. "Empirical Welfare Economics," Papers 2108.03277, arXiv.org, revised Sep 2022.
    6. Chambers, Christopher P. & Echenique, Federico, 2008. "Ordinal notions of submodularity," Journal of Mathematical Economics, Elsevier, vol. 44(11), pages 1243-1245, December.
    7. Chambers, Christopher P. & Echenique, Federico & Shmaya, Eran, 2010. "On behavioral complementarity and its implications," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2332-2355, November.
    8. Thomas A. Weber, 2023. "Relatively robust decisions," Theory and Decision, Springer, vol. 94(1), pages 35-62, January.
    9. Chambers, Christopher P. & Miller, Alan D. & Yenmez, M. Bumin, 2020. "Closure and preferences," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 161-166.
    10. Forges, Françoise & Iehlé, Vincent, 2014. "Afriat’s theorem for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 54(C), pages 1-6.
    11. Julia Bachtrögler & Harald Badinger & Aurélien Fichet de Clairfontaine & Wolf Heinrich Reuter, 2014. "Summarizing Data using Partially Ordered Set Theory: An Application to Fiscal Frameworks in 97 Countries," Department of Economics Working Papers wuwp181, Vienna University of Economics and Business, Department of Economics.
    12. John William Hatfield & Scott Duke Kominers, 2012. "Matching in Networks with Bilateral Contracts," American Economic Journal: Microeconomics, American Economic Association, vol. 4(1), pages 176-208, February.
    13. ,, 2010. "Rationalizable voting," Theoretical Economics, Econometric Society, vol. 5(1), January.
    14. Federico Echenique, 2020. "New Developments in Revealed Preference Theory: Decisions Under Risk, Uncertainty, and Intertemporal Choice," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 299-316, August.
    15. Francetich, Alejandro, 2013. "Notes on supermodularity and increasing differences in expected utility," Economics Letters, Elsevier, vol. 121(2), pages 206-209.
    16. Andrés Carvajal, 2010. "The testable implications of competitive equilibrium in economies with externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 45(1), pages 349-378, October.
    17. Pauline Vorjohann, 2023. "Reference-dependent choice bracketing," Discussion Papers 2309, University of Exeter, Department of Economics.
    18. Brian Duricy, 2023. "Preferences on Ranked-Choice Ballots," Papers 2301.02697, arXiv.org.
    19. repec:hal:wpaper:halshs-00870052 is not listed on IDEAS
    20. Hatfield, John William & Kominers, Scott Duke, 2017. "Contract design and stability in many-to-many matching," Games and Economic Behavior, Elsevier, vol. 101(C), pages 78-97.
    21. Koch, Caleb M., 2019. "Index-wise comparative statics," Mathematical Social Sciences, Elsevier, vol. 102(C), pages 35-41.
    22. Badinger, Harald & Reuter, Wolf Heinrich, 2015. "Measurement of fiscal rules: Introducing the application of partially ordered set (POSET) theory," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 108-123.
    23. Roy Allen & John Rehbeck, 2020. "Hicksian complementarity and perturbed utility models," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 245-261, October.

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