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Preference for Verifiability

Author

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  • Hendrik Rommeswinkel

Abstract

Decision makers sometimes cannot observe the consequences of their actions ex-post. This paper axiomatically characterizes a decision model in which the decision maker cares about verifying that a good consequence has been achieved. Preferences over acts identify a set of events the decision maker expects to verify. Decision makers choose acts maximizing, in expectation over verifiable events, the worst-case utility consistent with each event. A dual model captures decision makers who instead seek to obscure poor outcomes from verification. As an application, firms choosing carbon-reduction technologies may prefer less efficient but more verifiable technologies to prove emission reductions to stakeholders.

Suggested Citation

  • Hendrik Rommeswinkel, 2025. "Preference for Verifiability," Papers 2508.19585, arXiv.org, revised Mar 2026.
    • Handle: RePEc:arx:papers:2508.19585
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    References listed on IDEAS

    as
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