Nontransitive Preferences and Stochastic Rationalizability: A Behavioral Equivalence

Research output: Working paperPreprintResearch

Documents

  • Fulltext

    Submitted manuscript, 212 KB, PDF document

Nontransitive choices have long been an area of curiosity within economics. However, determining whether nontransitive choices represent an individual's preference is a difficult task since choice data is inherently stochastic. This paper shows that behavior from nontransitive preferences under a monotonicity assumption is equivalent to a transitive stochastic choice model. In particular, nontransitive preferences are regularly interpreted as a strength of preference, so we assume alternatives are chosen proportionally to the nontransitive preference. One implication of this result is that one cannot distinguish ``complementarity in attention" and ``complementarity in demand."
Original languageEnglish
DOIs
Publication statusPublished - 28 Apr 2023

    Research areas

  • econ.TH

Number of downloads are based on statistics from Google Scholar and www.ku.dk


No data available

ID: 347963490