Comparative Incompleteness: Measurement, Behavioral Manifestations and Elicitation

Edi Karni and Marie-Louise Vierø ()
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Marie-Louise Vierø: Department of Economics and Business Economics, Aarhus University, Postal: Fuglesangs Alle 4, DK-8210 Aarhus V, Denmark
Authors registered in the RePEc Author Service: Marie-Louise Vierø

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: This paper introduces measures of overall incompleteness of preference relations under risk and uncertainty, as well as measures of incompleteness of beliefs and tastes. These measures are used to define 'more incomplete' than relations among different preference relations. We show how greater incompleteness is manifested in the representations of decision makers’ preferences and illustrate its behavioral implications in a simple portfolio choice problem. In addition, the paper introduces incentive compatible schemes of eliciting the degrees of overall incompleteness and those of beliefs and tastes.

Keywords: Incomplete preferences; Knightian uncertainty; Comparative incompleteness; Elicitation mechanisms (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Pages: 48
Date: 2022-09-26
New Economics Papers: this item is included in nep-mic and nep-upt
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https://repec.econ.au.dk/repec/afn/wp/22/wp22_05.pdf (application/pdf)

Related works:
Journal Article: Comparative incompleteness: Measurement, behavioral manifestations and elicitation (2023)
Working Paper: Comparative Incompleteness: Measurement, Behavioral Manifestations and Elicitation (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2022-05

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