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Revealed preference and indifferent selection

Authors: Danan, Eric;

Revealed preference and indifferent selection

Abstract

It is shown that preferences can be constructed from observed choice behavior in a way that is robust to indifferent selection (i.e., the agent is indifferent between two alternatives but, nevertheless, is only observed selecting one of them). More precisely, a suggestion by Savage [Savage, L.J., 1954. The foundations of statistics. John Wiley and Sons] to reveal indifferent selection by considering small monetary perturbations of alternatives is formalized and generalized to a purely topological framework: preferences over an arbitrary topological space can be uniquely derived from observed behavior under the assumptions that they are continuous and nonsatiated and that a strictly preferred alternative is always chosen, and indifferent selection is then characterized by discontinuity in choice behavior. Two particular cases are then analyzed: monotonic preferences over a partially ordered set, and preferences representable by a continuous pseudo-utility function.

Countries
Spain, France, Spain
Keywords

Monotonicity, Behavioral and Experimental Economics, revealed preference, Revealed preference, indifference, choice behavior, continuity, nonsatiation, monotonicity, pseudo-utility, Nonsatiation, Pseudo-utility, monotonicity, Individual preferences, continuity, pseudo-utility, Indifference, choice behavior, Revealed preference, nonsatiation, indifference, Revealed preference,Indifference,Continuity,Nonsatiation,Monotonicity,Pseudo-utility, D.D1.D11 - Consumer Economics: Theory, Microeconomics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Continuity, jel: jel:D11

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Average
Average
Average
Green
hybrid