Rationalizing Path-Independent Choice Rules
Theoretical Economics
2024-05-30 v2
Abstract
Path independence is arguably one of the most important choice rule properties in economic theory. We show that a choice rule is path independent if and only if it is rationalizable by a utility function satisfying ordinal concavity, a concept closely related to concavity notions in discrete mathematics. We also provide a rationalization result for choice rules that satisfy path independence and the law of aggregate demand.
Cite
@article{arxiv.2303.00892,
title = {Rationalizing Path-Independent Choice Rules},
author = {Koji Yokote and Isa E. Hafalir and Fuhito Kojima and M. Bumin Yenmez},
journal= {arXiv preprint arXiv:2303.00892},
year = {2024}
}