Preference for flexibility and dynamic consistency with incomplete preferences

Fernanda Senra de Moura () and Gil Riella ()
Additional contact information
Fernanda Senra de Moura: University College London
Gil Riella: Getulio Vargas Foundation

Theory and Decision, 2021, vol. 90, issue 2, No 1, 181 pages

Abstract: Abstract We generalize a previous result about dynamically consistent menu preferences to the case where preferences are not necessarily complete. We show that, as it is the case when preferences are complete, a subjective state space version of dynamic consistency is linked to a comparative theory of preference for flexibility. In words, an objective signal is interpreted as an event in the agent’s subjective state space and the agent acts in a dynamically consistent way after that if and only if we can attribute all the differences between the agent’s preferences before and after the signal to the fact that the agent values flexibility more before the signal than after.

Keywords: Flexibility consistency; Bayesian update; Subjective state space; Multiple priors (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11238-020-09776-y 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_s11238-020-09776-y

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

DOI: 10.1007/s11238-020-09776-y

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 ().