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WARP and combinatorial choice

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  • Alva, Samson

Abstract

For combinatorial choice problems, I show that the Irrelevance of Rejected Items condition is equivalent to the Weak Axiom of Revealed Preference (WARP), and is necessary and sufficient for the existence of a complete, reflexive and antisymmetric rationalization of a combinatorial choice function. I also show the equivalence of WARP to path independence and to other classical choice conditions when the choice domain is combinatorial.

Suggested Citation

  • Alva, Samson, 2018. "WARP and combinatorial choice," Journal of Economic Theory, Elsevier, vol. 173(C), pages 320-333.
    • Handle: RePEc:eee:jetheo:v:173:y:2018:i:c:p:320-333
    DOI: 10.1016/j.jet.2017.11.007
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    References listed on IDEAS

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    Cited by:

    1. Samson Alva & Battal Dou{g}an, 2021. "Choice and Market Design," Papers 2110.15446, arXiv.org, revised Nov 2021.
    2. Marek Pycia & M Bumin Yenmez, 2023. "Matching with Externalities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(2), pages 948-974.
    3. Yang, Yi-You, 2020. "Rationalizable choice functions," Games and Economic Behavior, Elsevier, vol. 123(C), pages 120-126.
    4. Hans Peters & Panos Protopapas, 2021. "Set and revealed preference axioms for multi-valued choice," Theory and Decision, Springer, vol. 90(1), pages 11-29, February.
    5. Schlegel, Jan Christoph, 2020. "Equivalent choice functions and stable mechanisms," Games and Economic Behavior, Elsevier, vol. 123(C), pages 41-53.
    6. Alva, Samson & Manjunath, Vikram, 2019. "Strategy-proof Pareto-improvement," Journal of Economic Theory, Elsevier, vol. 181(C), pages 121-142.

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    More about this item

    Keywords

    Combinatorial choice; Rationalizability; Weak axiom of revealed preference; Irrelevance of rejected contracts; Path independence;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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