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Additive representation for preferences over menus in finite choice settings

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  • Gorno, Leandro

Abstract

This paper obtains an additive representation for preferences over subsets of a finite set relaxing the two substantive axioms in Kreps (1979) flexibility theorem. The result implies that the lottery structure and assumptions employed by Dekel, Lipman and Rustichini (2001) to identify the subjective state-space do not introduce extraneous restrictions on deterministic choice behavior. This property does not necessarily hold when additional axioms are imposed.

Suggested Citation

  • Gorno, Leandro, 2016. "Additive representation for preferences over menus in finite choice settings," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 41-47.
    • Handle: RePEc:eee:mateco:v:65:y:2016:i:c:p:41-47
    DOI: 10.1016/j.jmateco.2016.05.002
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    1. John E. Stovall, 2010. "Multiple Temptations," Econometrica, Econometric Society, vol. 78(1), pages 349-376, January.
    2. Igor Kopylov & Jawwad Noor, 2009. "Self-Deception and Choice," Levine's Working Paper Archive 814577000000000319, David K. Levine.
    3. Kopylov, Igor, 2009. "Finite additive utility representations for preferences over menus," Journal of Economic Theory, Elsevier, vol. 144(1), pages 354-374, January.
    4. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 2009. "Temptation-Driven Preferences," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 937-971.
    5. , & ,, 2010. "Uphill self-control," Theoretical Economics, Econometric Society, vol. 5(2), May.
    6. Dekel, Eddie & Lipman, Barton L & Rustichini, Aldo, 2001. "Representing Preferences with a Unique Subjective State Space," Econometrica, Econometric Society, vol. 69(4), pages 891-934, July.
    7. Sadowski, Philipp, 2008. "Conditional Preference for Flexibility: Eliciting Beliefs from Behavior," MPRA Paper 8614, University Library of Munich, Germany.
    8. Noor, Jawwad & Takeoka, Norio, 2015. "Menu-dependent self-control," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 1-20.
    9. Ortoleva, Pietro, 2013. "The price of flexibility: Towards a theory of Thinking Aversion," Journal of Economic Theory, Elsevier, vol. 148(3), pages 903-934.
    10. Noor, Jawwad, 2007. "Commitment and self-control," Journal of Economic Theory, Elsevier, vol. 135(1), pages 1-34, July.
    11. Todd Sarver, 2008. "Anticipating Regret: Why Fewer Options May Be Better," Econometrica, Econometric Society, vol. 76(2), pages 263-305, March.
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    20. Eddie Dekel & Barton L Lipman & Aldo Rustichini & Todd Sarver, 2007. "Representing Preferences with a Unique Subjective State Space: A Corrigendum -super-1," Econometrica, Econometric Society, vol. 75(2), pages 591-600, March.
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    Cited by:

    1. Gorno, Leandro & Natenzon, Paulo, 2018. "Subjective ambiguity and preference for flexibility," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 24-32.
    2. Honda, Edward, 2021. "Sophistication and preference inconsistency in a menu utility representation," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 116-121.

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    More about this item

    Keywords

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

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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