Nontransitive Preferences and Stochastic Rationalizability: A Behavioral Equivalence

• Tác giả: Mogens Fosgerau, John Rehbeck
• Ngôn ngữ: eng
• Ký hiệu phân loại: 170.44 Normative ethics
• Thông tin xuất bản: 2023
• Bộ sưu tập: Báo, Tạp chí
• ID: 197068

Tóm tắt

Nontransitive choices have long been an area of curiosity within economics. However, determining whether nontransitive choices represent an individual's preference is a difficult task since choice data is inherently stochastic. This paper shows that behavior from nontransitive preferences under a monotonicity assumption is equivalent to a transitive stochastic choice model. In particular, nontransitive preferences are regularly interpreted as a strength of preference, so we assume alternatives are chosen proportionally to the nontransitive preference. One implication of this result is that one cannot distinguish ``complementarity in attention" and ``complementarity in demand."