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Welfare criteria from choice: An axiomatic analysis

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  • Horan, Sean
  • Sprumont, Yves

Abstract

We propose an axiomatic approach to the problem of deriving a (linear) welfare ordering from a choice function. Admissibility requires that the ordering assigned to a rational choice function is the one that rationalizes it. Neutrality states that the solution covaries with permutations of the alternatives. Persistence stipulates that the ordering assigned to two choice functions is also assigned to every choice function in between.

Suggested Citation

  • Horan, Sean & Sprumont, Yves, 2016. "Welfare criteria from choice: An axiomatic analysis," Games and Economic Behavior, Elsevier, vol. 99(C), pages 56-70.
    • Handle: RePEc:eee:gamebe:v:99:y:2016:i:c:p:56-70
    DOI: 10.1016/j.geb.2016.07.005
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    References listed on IDEAS

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    Cited by:

    1. Caliari, Daniele, 2023. "Rationality is not consistency," Discussion Papers, Research Unit: Economics of Change SP II 2023-304, WZB Berlin Social Science Center.
    2. Guy Barokas & Burak Ünveren, 2022. "Impressionable Rational Choice: Revealed-Preference Theory with Framing Effects," Mathematics, MDPI, vol. 10(23), pages 1-19, November.
    3. Caliari, Daniele, 2023. "Behavioural welfare analysis and revealed preference: Theory and experimental evidence," Discussion Papers, Research Unit: Economics of Change SP II 2023-303, WZB Berlin Social Science Center.
    4. Giulia Bernardi & Roberto Lucchetti & Stefano Moretti, 2019. "Ranking objects from a preference relation over their subsets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(4), pages 589-606, April.

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    More about this item

    Keywords

    Choice-based welfare analysis; Bounded rationality;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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