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This paper explores a new class of incomplete preferences -- termed ``connected preferences'' -- in which maximal domains of comparability are topologically connected. We provide necessary and sufficient conditions for continuous…

Theoretical Economics · Economics 2026-05-01 Leandro Gorno , Alessandro Rivello

The principle that rational agents should maximize expected utility or choiceworthiness is intuitively plausible in many ordinary cases of decision-making under uncertainty. But it is less plausible in cases of extreme, low-probability risk…

Theoretical Economics · Economics 2020-08-11 Christian Tarsney

Choice modeling is at the core of understanding how changes to the competitive landscape affect consumer choices and reshape market equilibria. In this paper, we propose a fundamental characterization of choice functions that encompasses a…

Econometrics · Economics 2024-02-21 Amandeep Singh , Ye Liu , Hema Yoganarasimhan

This survey reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments;…

Theoretical Economics · Economics 2019-12-04 Federico Echenique

We study correlations in temporal networks and introduce the notion of betweenness preference. It allows to quantify to what extent paths, existing in time-aggregated representations of temporal networks, are actually realizable based on…

Physics and Society · Physics 2015-03-20 René Pfitzner , Ingo Scholtes , Antonios Garas , Claudio J. Tessone , Frank Schweitzer

A principled approach to cyclicality and intransitivity in paired comparison data is developed. The proposed methodology enables more precise estimation of the underlying preference profile and facilitates the identification of all cyclic…

Methodology · Statistics 2025-10-08 Rahul Singh , Ori Davidov

We explore the possibility of designing matching mechanisms that can accommodate non-standard choice behavior. We pin down the necessary and sufficient conditions on participants' choice behavior for the existence of stable and incentive…

Theoretical Economics · Economics 2024-08-12 Gian Caspari , Manshu Khanna

Many-to-many matching with contracts is studied in the framework of revealed preferences. All preferences are described by choice functions that satisfy natural conditions. Under a no-externality assumption individual preferences can be…

Computer Science and Game Theory · Computer Science 2020-03-05 Daniel Lehmann

We provide an axiomatic foundation for the representation of num\'{e}raire-invariant preferences of economic agents acting in a financial market. In a static environment, the simple axioms turn out to be equivalent to the following choice…

General Finance · Quantitative Finance 2010-11-09 Constantinos Kardaras

We analyze the relative price change of assets starting from basic supply/demand considerations subject to arbitrary motivations. The resulting stochastic differential equation has coefficients that are functions of supply and demand. We…

Theoretical Economics · Economics 2020-08-26 Carey Caginalp , Gunduz Caginalp

Existing observational approaches for learning human preferences, such as inverse reinforcement learning, usually make strong assumptions about the observability of the human's environment. However, in reality, people make many important…

Machine Learning · Statistics 2021-10-29 Cassidy Laidlaw , Stuart Russell

In the last decade, stochastic models have shown to be very useful for quantitative modelling of social processes. Here, a configurational master equation for the description of behavioral changes by pair interactions of individuals is…

Statistical Mechanics · Physics 2009-10-31 Dirk Helbing

Models of stochastic choice typically use conditional choice probabilities given menus as the primitive for analysis, but in the field these are often hard to observe. Moreover, studying preferences over menus is not possible with this…

Theoretical Economics · Economics 2022-08-19 Yaron Azrieli , John Rehbeck

Complexity of the problem of choosing among uncertain acts is a salient feature of many of the environments in which departures from expected utility theory are observed. I propose and axiomatize a model of choice under uncertainty in which…

Theoretical Economics · Economics 2022-10-17 Quitzé Valenzuela-Stookey

Can stated preferences inform counterfactual analyses of actual choice? This research proposes a novel approach to researchers who have access to both stated choices in hypothetical scenarios and actual choices, matched or unmatched. The…

Econometrics · Economics 2025-11-18 Romuald Meango , Marc Henry , Ismael Mourifie

The coordinated and efficient distribution of limited resources by individual decisions is a fundamental, unsolved problem. When individuals compete for road capacities, time, space, money, goods, etc., they normally make decisions based on…

Statistical Mechanics · Physics 2009-11-07 Dirk Helbing , Martin Schoenhof , Daniel Kern

Choice functions accept a set of alternatives as input and produce a preferred subset of these alternatives as output. We study the problem of learning such functions under conditions of context-dependence of preferences, which means that…

Machine Learning · Computer Science 2021-10-25 Karlson Pfannschmidt , Pritha Gupta , Björn Haddenhorst , Eyke Hüllermeier

A dynamic model of collective consumption and saving decisions made by a finite number of agents with constant but different discount rates is developed. Collective utility is a weighted sum of individual utilities with time-varying utility…

Optimization and Control · Mathematics 2018-07-18 Luis A. Alcala

We implement nonparametric revealed-preference tests of subjective expected utility theory and its generalizations. We find that a majority of subjects' choices are consistent with the maximization of some utility function. They respond to…

General Economics · Economics 2021-05-04 Federico Echenique , Taisuke Imai , Kota Saito

The construction of numerical value scales (or priority values) is a recurrent topic in decision-aiding research. However, in real contexts, uncertainty and limited cognitive precision often lead decision-makers to provide interval…

General Mathematics · Mathematics 2025-10-21 Diego García-Zamora , José Rui Figueira