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Ranking opportunity sets, indirect utility and indifferences




We characterize a new quasi-ordering on the collection of opportunity (or choice) sets. This new rule combines two criteria: the individual preferences on the universal set of options and the number of maximal options in the opportunity set. This new rule is compared with the indirect utility approach, and is further refined towards the leximax rule defined by Bossert, Pattanaik, and Xu (Journal of Economic Theory, 63, 1994).

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  • Tom POTTOMS & Luc LAUWERS, 2012. "Ranking opportunity sets, indirect utility and indifferences," Working Papers Department of Economics ces12.13, KU Leuven, Faculty of Economics and Business, Department of Economics.
  • Handle: RePEc:ete:ceswps:ces12.13

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