 The lexicographic method in preference theoryEconomic Theory, 2021, vol. 71, issue 2, No 7, 553-577 Abstract: Abstract Lexicographically ordered sets of binary criteria provide a uniform measure of how concisely a preference can be represented and how efficiently an agent can make decisions. This measure leads to: (1) sharper conclusions about which preferences are easy to represent than the economics test of checking if a preference has a utility representation, (2) a generalization of the classical result that a preference has a utility representation if and only if it has a countable order-dense subset. Lexicographically ordered binary criteria can also generate preferences that strictly order every pair of bundles in $${\mathbb {R}}^{n}$$ R n and have utility representations, thus reconciling utility theory with behavioral theories that rule out indifference. Finally, the lexicographic method provides simple proofs that transitive orders can be extended to linear orders. Keywords: Preference representation; Lexicographic utility; Szpilrajn’s theorem; Injections from $${\mathbb {R}}^{n}$$ R n to $${\mathbb {R}}$$ R (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:71:y:2021:i:2:d:10.1007_s00199-020-01256-2 Ordering information: This journal article can be ordered from DOI: 10.1007/s00199-020-01256-2 Access Statistics for this article Economic Theory is currently edited by Nichoals Yanneils More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC. |
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