On the Multi-Preference Approach to Evaluating Opportunities

Posted: 5 Jan 1999

See all articles by Klaus Nehring

Klaus Nehring

University of California, Davis - Department of Economics

Clemens Puppe

University of Karlsruhe; Karlsruhe Institute of Technology

Abstract

The purpose of the paper is to provide a general framework for analyzing "preference for opportunities." Based on two simple axioms a fundamental result due to Kreps is used in order to represent rankings of opportunity sets in terms of multiple preferences. The paper provides several refinements of the basic representation theorem. In particular, a condition of "closedness under compromise" is suggested in order to distinguish the flexibility interpretation of the model from normative interpretations which play a crucial role in justifying the intrinsic value of opportunities. Moreover, the paper clarifies the link between the multiple preference approach and the "choice function" approach to evaluating opportunities. In particular, it is shown how the well-known Aizerman/Malishevski result on rationalizability of choice functions can be obtained as a corollary from the more general multiple preference representation of a ranking of opportunity sets.

Suggested Citation

Nehring, Klaus and Puppe, Clemens and Puppe, Clemens, On the Multi-Preference Approach to Evaluating Opportunities. Available at SSRN: https://ssrn.com/abstract=140148

Klaus Nehring (Contact Author)

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
916-752-3379 (Phone)
916-752-9382 (Fax)

Clemens Puppe

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

University of Karlsruhe ( email )

Kaiserstrasse 12
Karlsruhe, 76128
Germany

HOME PAGE: http://www.wior.uni-karlsruhe.de/LS_Puppe/Personal/puppe_home

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