Parametric continuity from preferences when the topology is weak and actions are discrete

Patrick O'Callaghan

MPRA Paper from University Library of Munich, Germany

Abstract: Empirical settings often involve discrete actions and rich parameter spaces where the notion of open set is constrained. This restricts the class of continuous functions from parameters to actions. Yet suitably continuous policies and value functions are necessary for many standard results in economic theory. We derive these tools from preferences when the parameter space is normal (disjoint closed sets can be separated). Whereas we use preferences to generate an endogenous pseudometric, existing results require metrizable parameter spaces. Still, weakly ordered parameters do not form a normal space. We provide a solution and close with an algorithm for eliciting preferences.

Keywords: Continuity; preferences; metrizability (search for similar items in EconPapers)
JEL-codes: C0 C02 C6 (search for similar items in EconPapers)
Date: 2016-06-28
New Economics Papers: this item is included in nep-ger
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/72356/1/MPRA_paper_72356.pdf original version (application/pdf)

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:pra:mprapa:72356

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().