A necessary but insufficient condition for the stochastic binary choice problem

Itzhak Gilboa*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The "stochastic binary choice problem" is the following: Let there be given n alternatives, to be denoted by N = {1, ..., n}. For each of the n! possible linear orderings {≻m}m = 1n of the alternatives, define a matrix Yn × n(m)(1 ≤ m ≤ n!) as follows: Yab(m) = 1 0 a≻mb otherwise. Given a real matrix Qn × n, when is Q in the convex hull of {Y(m)}m? In this paper some necessary conditions on Q-the "diagonal inequality"-are formulated and they are proved to generalize the Cohen-Falmagne conditions. A counterexample shows that the diagonal inequality is insufficient (as are hence, perforce, the Cohen-Falmagne conditions). The same example is used to show that Fishburn's conditions are also insufficient.

Original languageEnglish
Pages (from-to)371-392
Number of pages22
JournalJournal of Mathematical Psychology
Volume34
Issue number4
DOIs
StatePublished - Dec 1990
Externally publishedYes

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