An ordinal theorem of the maximum

Marek Weretka ()
Additional contact information
Marek Weretka: University of Wisconsin-Madison

Economic Theory, 2023, vol. 76, issue 1, No 10, 353-373

Abstract: Abstract This paper extends the notion of equivalent variation, Hicks (Value and capital, 1939) to an abstract decision problem. It also provides a modern, ordinal variant of the maximum theorem, Berge (Topological spaces: including a treatment of multi-valued functions, vector spaces, and convexity, Courier Corporation, Chelmsford, 1963) that formulates the assumptions in terms of underlying preferences and demonstrates the continuity of the classic preference-based welfare indices (i.e., the equivalent and compensating variations) as well as the upper hemicontinuity of the choice correspondence. We apply the theorem to relevant economic problems.

Keywords: Maximum theorem; Equivalent variation; Ordinal convergence; D43; D53; G11; G12; L13 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00199-022-01458-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:joecth:v:76:y:2023:i:1:d:10.1007_s00199-022-01458-w

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

DOI: 10.1007/s00199-022-01458-w

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.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().