On the aversion to incomplete preferences

Ritxar Arlegi (), Sacha Bourgeois-Gironde and Mikel Hualde
Additional contact information
Ritxar Arlegi: Public University of Navarre and Institute for Advanced Research in Business and Economics (INARBE)
Mikel Hualde: Public University of Navarre and Institute for Advanced Research in Business and Economics (INARBE)

Theory and Decision, 2021, vol. 90, issue 2, No 2, 183-217

Abstract: Abstract We propose an axiomatization of aversion to incomplete preferences. Some prevailing models of incomplete preferences rely on the hypothesis that incompleteness is temporary and that by keeping their opportunity set open individuals reveal a preference for flexibility. We consider that the maintenance of incomplete preference is also aversive. Our model allows us to show how incompleteness induces an aversive attitude in two different ways: intrinsic and instrumental. Intrinsic aversion holds when one instance of incomplete preference in the set suffices to decrease its utility. Instrumental aversion holds only insofar dominating options are affected by incompleteness. Given two partially overlapping sets of axioms on the binary relation over sets we formalize their consistency with the two types of aversion to incompleteness. Finally, we relate our model to the classical Sen’s distinction between tentative and assertive incompleteness. The spelling out of this distinction in the terms of our approach uncovers to what extent aversion to incompleteness may be compatible with a preference for flexibility.

Keywords: Aversion to incomplete preferences; Preference for flexibility; Ranking sets (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s11238-020-09779-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:theord:v:90:y:2021:i:2:d:10.1007_s11238-020-09779-9

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11238/PS2

DOI: 10.1007/s11238-020-09779-9

Access Statistics for this article

Theory and Decision is currently edited by Mohammed Abdellaoui

More articles in Theory and Decision from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().