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Best Complete Approximations of Preference Relations

Theoretical Economics 2023-11-14 v1 Discrete Mathematics Combinatorics

Abstract

We investigate the problem of approximating an incomplete preference relation \succsim on a finite set by a complete preference relation. We aim to obtain this approximation in such a way that the choices on the basis of two preferences, one incomplete, the other complete, have the smallest possible discrepancy in the aggregate. To this end, we use the top-difference metric on preferences, and define a best complete approximation of \succsim as a complete preference relation nearest to \succsim relative to this metric. We prove that such an approximation must be a maximal completion of \succsim, and that it is, in fact, any one completion of \succsim with the largest index. Finally, we use these results to provide a sufficient condition for the best complete approximation of a preference to be its canonical completion. This leads to closed-form solutions to the best approximation problem in the case of several incomplete preference relations of interest.

Keywords

Cite

@article{arxiv.2311.06641,
  title  = {Best Complete Approximations of Preference Relations},
  author = {Hiroki Nishimura and Efe A. Ok},
  journal= {arXiv preprint arXiv:2311.06641},
  year   = {2023}
}
R2 v1 2026-06-28T13:18:12.704Z