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The leveling axiom

Author

Listed:
  • Alvaro Sandroni

    (Northwestern University)

  • Leo Katz

    (University of Pennsylvania Law School)

Abstract

We characterize general constraints under which rational choices are characterized by asymmetric revealed preferences. A key feature of our main characterization result is expressed by the leveling axiom. We also consider the special case of a law-abiding decision maker who chooses optimally among legal options. We show that the law does not necessarily satisfy the leveling axiom and, therefore, transitivity adds empirical content to law-abiding choices.

Suggested Citation

  • Alvaro Sandroni & Leo Katz, 2024. "The leveling axiom," Theory and Decision, Springer, vol. 96(1), pages 135-152, February.
    • Handle: RePEc:kap:theord:v:96:y:2024:i:1:d:10.1007_s11238-023-09943-x
    DOI: 10.1007/s11238-023-09943-x
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    References listed on IDEAS

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    Revealed preferences; Law;

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