
handle: 10230/965
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.
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
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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