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Sophistication and preference inconsistency in a menu utility representation

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  • Honda, Edward

Abstract

We provide an additive utility representation for any complete and transitive preference over menus of alternatives. The representation makes it seem as if a sophisticated individual takes into account the state dependent payoffs of two individuals that have to consume the same alternative from the menu but may have inconsistent preferences in some of the subjective states. We also consider special cases including when only one state is needed. Furthermore, we find upper bounds on the minimal number of subjective states needed for the representation.

Suggested Citation

  • Honda, Edward, 2021. "Sophistication and preference inconsistency in a menu utility representation," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 116-121.
    • Handle: RePEc:eee:matsoc:v:114:y:2021:i:c:p:116-121
    DOI: 10.1016/j.mathsocsci.2021.08.006
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    References listed on IDEAS

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