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Justifiable choice

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  • Heller, Yuval

Abstract

Most existing decision-making models assume that choice behavior is based on preference maximization even when the preferences are incomplete. In this paper we study an alternative approach – “justifiable choice”: each agent has several preference relations (“justifications”), and she can use each justification in every choice problem. We present a new behavioral property that requires an alternative to be chosen if it is not inferior to all mixtures of chosen alternatives, and show that this property characterizes justifiable choice. The main application of this property yields a multiple-utility representation, which substantially differs from existing related representations. In addition, we obtain a multiple-prior representation, and study the notions of indecisiveness and being more decisive.

Suggested Citation

  • Heller, Yuval, 2012. "Justifiable choice," Games and Economic Behavior, Elsevier, vol. 76(2), pages 375-390.
    • Handle: RePEc:eee:gamebe:v:76:y:2012:i:2:p:375-390
    DOI: 10.1016/j.geb.2012.07.001
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    2. Evren, Özgür, 2014. "Scalarization methods and expected multi-utility representations," Journal of Economic Theory, Elsevier, vol. 151(C), pages 30-63.
    3. McCarthy, David & Mikkola, Kalle & Thomas, Teruji, 2021. "Expected utility theory on mixture spaces without the completeness axiom," Journal of Mathematical Economics, Elsevier, vol. 97(C).
    4. McCarthy, David & Mikkola, Kalle & Thomas, Teruji, 2017. "Representation of strongly independent preorders by sets of scalar-valued functions," MPRA Paper 79284, University Library of Munich, Germany.
    5. Tigran Melkonyan & Zvi Safra, 2016. "Intrinsic Variability in Group and Individual Decision Making," Management Science, INFORMS, vol. 62(9), pages 2651-2667, September.
    6. Juho Kokkala & Kimmo Berg & Kai Virtanen & Jirka Poropudas, 2019. "Rationalizable strategies in games with incomplete preferences," Theory and Decision, Springer, vol. 86(2), pages 185-204, March.

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    More about this item

    Keywords

    Menu effects; Incomplete preferences; Multiple utilities; Multiple priors; Indecisiveness; Non-binary choice; Tradeoff contrast effect;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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