IDEAS home Printed from https://ideas.repec.org/a/eee/jetheo/v145y2010i6p2463-2470.html
   My bibliography  Save this article

An efficiency theorem for incompletely known preferences

Author

Listed:
  • Carroll, Gabriel

Abstract

There are n agents who have von Neumann-Morgenstern utility functions on a finite set of alternatives A. Each agent i's utility function is known to lie in the nonempty, convex, relatively open set Ui. Suppose L is a lottery on A that is undominated, meaning that there is no other lottery that is guaranteed to Pareto dominate L no matter what the true utility functions are. Then, there exist utility functions ui[set membership, variant]Ui for which L is Pareto efficient. This result includes the ordinal efficiency welfare theorem as a special case.

Suggested Citation

  • Carroll, Gabriel, 2010. "An efficiency theorem for incompletely known preferences," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2463-2470, November.
    • Handle: RePEc:eee:jetheo:v:145:y:2010:i:6:p:2463-2470
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022-0531(10)00075-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Caterina Calsamiglia & Guillaume Haeringer & Flip Klijn, 2010. "Constrained School Choice: An Experimental Study," American Economic Review, American Economic Association, vol. 100(4), pages 1860-1874, September.
    2. Juan Dubra & Fabio Maccheroni & Efe A. Ok, 2004. "Expected Utility Without the Completeness Axiom," Yale School of Management Working Papers ysm404, Yale School of Management.
    3. Dubra, Juan & Maccheroni, Fabio & Ok, Efe A., 2004. "Expected utility theory without the completeness axiom," Journal of Economic Theory, Elsevier, vol. 115(1), pages 118-133, March.
    4. Haeringer, Guillaume & Klijn, Flip, 2009. "Constrained school choice," Journal of Economic Theory, Elsevier, vol. 144(5), pages 1921-1947, September.
    5. Manea, Mihai, 2008. "A constructive proof of the ordinal efficiency welfare theorem," Journal of Economic Theory, Elsevier, vol. 141(1), pages 276-281, July.
    6. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match," NBER Working Papers 14864, National Bureau of Economic Research, Inc.
    7. Bogomolnaia, Anna & Moulin, Herve, 2001. "A New Solution to the Random Assignment Problem," Journal of Economic Theory, Elsevier, vol. 100(2), pages 295-328, October.
    8. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-1978, December.
    9. McLennan, Andrew, 2002. "Ordinal Efficiency and the Polyhedral Separating Hyperplane Theorem," Journal of Economic Theory, Elsevier, vol. 105(2), pages 435-449, August.
    10. ,, 2009. "Asymptotic ordinal inefficiency of random serial dictatorship," Theoretical Economics, Econometric Society, vol. 4(2), June.
    11. Abdulkadiroglu, Atila & Sonmez, Tayfun, 2003. "Ordinal efficiency and dominated sets of assignments," Journal of Economic Theory, Elsevier, vol. 112(1), pages 157-172, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christopher P Chambers & Federico Echenique, 2021. "Empirical Welfare Economics," Papers 2108.03277, arXiv.org, revised Jun 2024.
    2. De Magistris, Enrico, 2024. "Incomplete preferences or incomplete information? On Rationalizability in games with private values," Games and Economic Behavior, Elsevier, vol. 144(C), pages 126-140.
    3. Haris Aziz, 2017. "Characterizing SW-Efficiency in the Social Choice Domain," Economics Bulletin, AccessEcon, vol. 37(1), pages 48-51.
    4. Aziz, Haris & Brandl, Florian & Brandt, Felix, 2015. "Universal Pareto dominance and welfare for plausible utility functions," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 123-133.
    5. Gorno, Leandro, 2017. "A strict expected multi-utility theorem," Journal of Mathematical Economics, Elsevier, vol. 71(C), pages 92-95.
    6. Athanassoglou, Stergios, 2011. "Efficiency under a combination of ordinal and cardinal information on preferences," Journal of Mathematical Economics, Elsevier, vol. 47(2), pages 180-185, March.
    7. Miralles, Antonio & Pycia, Marek, 2021. "Foundations of pseudomarkets: Walrasian equilibria for discrete resources," Journal of Economic Theory, Elsevier, vol. 196(C).
    8. Evren, Özgür, 2014. "Scalarization methods and expected multi-utility representations," Journal of Economic Theory, Elsevier, vol. 151(C), pages 30-63.
    9. Haris Aziz, 2014. "A characterization of stochastic dominance efficiency," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 2(2), pages 205-212, October.
    10. Carlier, G. & Dana, R.-A., 2013. "Pareto optima and equilibria when preferences are incompletely known," Journal of Economic Theory, Elsevier, vol. 148(4), pages 1606-1623.
    11. G. Carlier & R.-A. Dana & R.-A. Dana, 2014. "Pareto optima and equilibria when preferences are incompletely known," Working Papers 2014-60, Department of Research, Ipag Business School.
    12. Harless, Patrick, 2019. "Efficient rules for probabilistic assignment," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 107-116.
    13. repec:ipg:wpaper:2014-060 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kojima, Fuhito, 2013. "Efficient resource allocation under multi-unit demand," Games and Economic Behavior, Elsevier, vol. 82(C), pages 1-14.
    2. Fuhito Kojima & M. Ünver, 2014. "The “Boston” school-choice mechanism: an axiomatic approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 515-544, April.
    3. Kesten, Onur & Unver, Utku, 2015. "A theory of school choice lotteries," Theoretical Economics, Econometric Society, vol. 10(2), May.
    4. Aziz, Haris & Brandl, Florian & Brandt, Felix, 2015. "Universal Pareto dominance and welfare for plausible utility functions," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 123-133.
    5. Onur Kesten & Morimitsu Kurino & Alexander S. Nesterov, 2017. "Efficient lottery design," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 31-57, January.
    6. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2014. "Assigning agents to a line," Games and Economic Behavior, Elsevier, vol. 87(C), pages 539-553.
    7. Wu, Binzhen & Zhong, Xiaohan, 2014. "Matching mechanisms and matching quality: Evidence from a top university in China," Games and Economic Behavior, Elsevier, vol. 84(C), pages 196-215.
    8. Hatfield, John William & Kojima, Fuhito & Narita, Yusuke, 2016. "Improving schools through school choice: A market design approach," Journal of Economic Theory, Elsevier, vol. 166(C), pages 186-211.
    9. Christopher P Chambers & Federico Echenique, 2021. "Empirical Welfare Economics," Papers 2108.03277, arXiv.org, revised Jun 2024.
    10. Athanassoglou, Stergios, 2011. "Efficiency under a combination of ordinal and cardinal information on preferences," Journal of Mathematical Economics, Elsevier, vol. 47(2), pages 180-185, March.
    11. Kojima, Fuhito & Manea, Mihai, 2010. "Incentives in the probabilistic serial mechanism," Journal of Economic Theory, Elsevier, vol. 145(1), pages 106-123, January.
    12. Flip Klijn & Joana Pais & Marc Vorsatz, 2013. "Preference intensities and risk aversion in school choice: a laboratory experiment," Experimental Economics, Springer;Economic Science Association, vol. 16(1), pages 1-22, March.
    13. Dur, Umut Mert & Morrill, Thayer, 2020. "What you don't know can help you in school assignment," Games and Economic Behavior, Elsevier, vol. 120(C), pages 246-256.
    14. Andrew McLennan & Shino Takayama & Yuki Tamura, 2024. "An Efficient, Computationally Tractable School Choice Mechanism," Discussion Papers Series 668, School of Economics, University of Queensland, Australia.
    15. Chen, Yan & Jiang, Ming & Kesten, Onur & Robin, Stéphane & Zhu, Min, 2018. "Matching in the large: An experimental study," Games and Economic Behavior, Elsevier, vol. 110(C), pages 295-317.
    16. Ortega, Josue & Klein, Thilo, 2022. "Improving efficiency and equality in school choice," ZEW Discussion Papers 22-046, ZEW - Leibniz Centre for European Economic Research.
    17. Miralles, Antonio & Pycia, Marek, 2021. "Foundations of pseudomarkets: Walrasian equilibria for discrete resources," Journal of Economic Theory, Elsevier, vol. 196(C).
    18. Harless, Patrick, 2019. "Efficient rules for probabilistic assignment," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 107-116.
    19. Ashlagi, Itai & Nikzad, Afshin & Romm, Assaf, 2019. "Assigning more students to their top choices: A comparison of tie-breaking rules," Games and Economic Behavior, Elsevier, vol. 115(C), pages 167-187.
    20. Ortega, Josué & Klein, Thilo, 2023. "The cost of strategy-proofness in school choice," Games and Economic Behavior, Elsevier, vol. 141(C), pages 515-528.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:145:y:2010:i:6:p:2463-2470. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622869 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.