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Sophistication and preference inconsistency in a menu utility representation

Authors :
Edward Honda
Source :
Mathematical Social Sciences. 114:116-121
Publication Year :
2021
Publisher :
Elsevier BV, 2021.

Abstract

We provide an additive utility representation for any complete and transitive preference over menus of alternatives. The representation makes it seem as if a sophisticated individual takes into account the state dependent payoffs of two individuals that have to consume the same alternative from the menu but may have inconsistent preferences in some of the subjective states. We also consider special cases including when only one state is needed. Furthermore, we find upper bounds on the minimal number of subjective states needed for the representation.

Details

ISSN :
01654896
Volume :
114
Database :
OpenAIRE
Journal :
Mathematical Social Sciences
Accession number :
edsair.doi...........e80d21e0a4cbda2ac80c730675bbb168
Full Text :
https://doi.org/10.1016/j.mathsocsci.2021.08.006