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Benchmarking

Author

Listed:
  • Chambers, Christopher P.

    (Department of Economics, Georgetown University)

  • Miller, Alan D.

    (Faculty of Law and Department of Economics, University of Haifa)

Abstract

We investigate a normative theory of incomplete preferences in the context of preliminary screening procedures. We introduce a theory of ranking in the presence of objectively incomparable marginal contributions (apples and oranges). Our theory recommends benchmarking, a method under which an individual is deemed more accomplished than another if and only if she has achieved more benchmarks, or important accomplishments. We show that benchmark rules are characterized by four axioms: transitivity, monotonicity, incomparability of marginal gains, and incomparability of marginal losses.

Suggested Citation

  • Chambers, Christopher P. & Miller, Alan D., 2018. "Benchmarking," Theoretical Economics, Econometric Society, vol. 13(2), May.
    • Handle: RePEc:the:publsh:2506
    as

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    References listed on IDEAS

    as
    1. Chambers, Christopher P. & Miller, Alan D. & Yenmez, M. Bumin, 2020. "Closure and preferences," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 161-166.
    2. Miller, Alan D., 2008. "Group identification," Games and Economic Behavior, Elsevier, vol. 63(1), pages 188-202, May.
    3. Juan Dubra & Fabio Maccheroni & Efe A. Ok, 2004. "Expected Utility Without the Completeness Axiom," Yale School of Management Working Papers ysm404, Yale School of Management.
    4. Bruno Leclerc & Bernard Monjardet, 2010. "Aggregation and residuation," Post-Print halshs-00504982, HAL.
    5. Dinko Dimitrov & Thierry Marchant & Debasis Mishra, 2012. "Separability and aggregation of equivalence relations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(1), pages 191-212, September.
    6. Chambers,Christopher P. & Echenique,Federico, 2016. "Revealed Preference Theory," Cambridge Books, Cambridge University Press, number 9781107087804.
    7. Dubra, Juan & Maccheroni, Fabio & Ok, Efe A., 2004. "Expected utility theory without the completeness axiom," Journal of Economic Theory, Elsevier, vol. 115(1), pages 118-133, March.
    8. Christensen, Flemming & Hougaard, Jens Leth & Keiding, Hans, 1999. "An axiomatic characterization of efficiency indices," Economics Letters, Elsevier, vol. 63(1), pages 33-37, April.
    9. Christopher Chambers & Alan Miller, 2011. "Rules for aggregating information," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(1), pages 75-82, January.
    10. Duggan, John, 1999. "A General Extension Theorem for Binary Relations," Journal of Economic Theory, Elsevier, vol. 86(1), pages 1-16, May.
    11. Jens Hougaard & Hans Keiding, 1998. "On the Functional Form of an Efficiency Index," Journal of Productivity Analysis, Springer, vol. 9(2), pages 103-111, March.
    12. Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
    13. Ok, Efe A., 2002. "Utility Representation of an Incomplete Preference Relation," Journal of Economic Theory, Elsevier, vol. 104(2), pages 429-449, June.
    14. Kreps, David M, 1979. "A Representation Theorem for "Preference for Flexibility"," Econometrica, Econometric Society, vol. 47(3), pages 565-577, May.
    15. Donaldson, David & Weymark, John A., 1998. "A Quasiordering Is the Intersection of Orderings," Journal of Economic Theory, Elsevier, vol. 78(2), pages 382-387, February.
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    Cited by:

    1. Chambers, Christopher P. & Miller, Alan D. & Yenmez, M. Bumin, 2020. "Closure and preferences," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 161-166.
    2. Upama Nakarmi & Mahshid Rahnamay Naeini & Md Jakir Hossain & Md Abul Hasnat, 2020. "Interaction Graphs for Cascading Failure Analysis in Power Grids: A Survey," Energies, MDPI, vol. 13(9), pages 1-25, May.
    3. S. Andrew Starbird & Narendra Agrawal, 1996. "Competitive food manufacturing: Evidence from the 1994 competitive manufacturing survey," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 525-539.

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    More about this item

    Keywords

    Benchmarking; axioms; measurement; apples and oranges; incompleteness; closure operator; homomorphisms;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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