Title
Additive representation for preferences over menus in finite choice settings
Author(s)
Leandro Gorno Leandro Gorno (Princeton University)
Abstract
This paper proves that every preference relation over the set of all menus from a finite set has an additive representation. The result implies that Kreps ordinal submodularity condition is not needed when both preferences for flexibility and preference for commitment are permitted. It is also shown that any preference over menus from a finite set can be extended to a linear and continuous preference over menus of lotteries. It follows that the von Neumann-Morgenstern assumptions of the Dekel-Lipman-Rustichini model are inessential for the additive representation of menu preferences.
Creation Date
2010-12
Section URL ID
ET
Paper Number
wp003_2011_Gorno.pdf
URL
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.445.1706&rep=rep1&type=pdf
File Function
Jel
C010, D010, D110, H310
Keyword(s)
Dynamic choice; Preference for flexibility; Preference for commitment
Suppress
false
Series
10