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The structure of incomplete preferences

Author

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  • Leandro Gorno

    (FGV/EPGE - Escola Brasileira de Economia e Finanças)

Abstract

I study incomplete preferences as a means to represent indecisiveness. A decomposition into maximal domains of comparability is characterized and used to link optimization of incomplete preferences with maximization of local utility functions. Larger maximal domains are shown to correspond to more decisive preferences. The decomposition can be uniquely recovered from choice data under standard assumptions. Applications to different models within decision theory are discussed.

Suggested Citation

  • Leandro Gorno, 2018. "The structure of incomplete preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(1), pages 159-185, July.
    • Handle: RePEc:spr:joecth:v:66:y:2018:i:1:d:10.1007_s00199-017-1057-9
    DOI: 10.1007/s00199-017-1057-9
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    References listed on IDEAS

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    Cited by:

    1. M. Ali Khan & Metin Uyanık, 2021. "Topological connectedness and behavioral assumptions on preferences: a two-way relationship," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(2), pages 411-460, March.
    2. Gorno, Leandro & Rivello, Alessandro T., 2023. "A maximum theorem for incomplete preferences," Journal of Mathematical Economics, Elsevier, vol. 106(C).
    3. Leandro Gorno & Alessandro Rivello, 2020. "Connected Incomplete Preferences," Papers 2008.04401, arXiv.org.

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    More about this item

    Keywords

    Incomplete preferences; Indecisiveness; Maximal elements; Best elements; Revealed preference;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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