No. 819: Rationalizability of Menu Preferences
Christopher J. Tyson ,
Queen Mary University of London
April 10, 2017
The class of preferences over opportunity sets ("menus") rationalizable by underlying preferences over the alternatives is characterized for the general case in which the dataset is unrestricted. In particular, both the universal set of alternatives and the domain of menus over which preferences are asserted by the decision maker are arbitrary. The key "Cover Dominance" axiom states that any menu strictly preferred to a collection of menus must be strictly preferred to any menu covered by the collection. The method of characterization relies upon transitivity of menu preferences, but completeness can be relaxed.
J.E.L classification codes: D01, D11
Keywords:General domains, Opportunity sets, Revealed preference, Transitivity