Aggregate Bound Choices about Random and Nonrandom Goods Studied via a Nonlinear Analysis

Fabrizio Maturo () and Pierpaolo Angelini
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Fabrizio Maturo: Faculty of Economics, Universitas Mercatorum, 00186 Rome, Italy
Pierpaolo Angelini: Dipartimento di Scienze Statistiche, Università La Sapienza, 00185 Rome, Italy

Mathematics, 2023, vol. 11, issue 11, 1-30

Abstract: In this paper, bound choices are made after summarizing a finite number of alternatives. This means that each choice is always the barycenter of masses distributed over a finite set of alternatives. More than two marginal goods at a time are not handled. This is because a quadratic metric is used. In our models, two marginal goods give rise to a joint good, so aggregate bound choices are shown. The variability of choice for two marginal goods that are the components of a multiple good is studied. The weak axiom of revealed preference is checked and mean quadratic differences connected with multiple goods are proposed. In this paper, many differences from vast majority of current research about choices and preferences appear. First of all, conditions of certainty are viewed to be as an extreme simplification. In fact, in almost all circumstances, and at all times, we all find ourselves in a state of uncertainty. Secondly, the two notions, probability and utility, on which the correct criterion of decision-making depends, are treated inside linear spaces over R having a different dimension in accordance with the pure subjectivistic point of view.

Keywords: consumption matrix; discrete alternatives; aggregate measure; Fréchet class; revealed preference; mean quadratic difference (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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