Aggregation of semiorders: intransitive indifference makes a difference

Itzhak Gilboa*, Robert Lapson

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

A semiorder can be thought of as a binary relation P for which there is a utility u representing it in the following sense:xPy iff u(x) -u(y) > 1. We argue that weak orders (for which indifference is transitive) can not be considered a successful approximation of semiorders; for instance, a utility function representing a semiorder in the manner mentioned above is almost unique, i.e. cardinal and not only ordinal. In this paper we deal with semiorders on a product space and their relation to given semiorders on the original spaces. Following the intuition of Rubinstein we find surprising results: with the appropriate framework, it turns out that a Savage-type expected utility requires significantly weaker axioms than it does in the context of weak orders.

Original languageEnglish
Pages (from-to)109-126
Number of pages18
JournalEconomic Theory
Volume5
Issue number1
DOIs
StatePublished - Feb 1995
Externally publishedYes

Fingerprint

Dive into the research topics of 'Aggregation of semiorders: intransitive indifference makes a difference'. Together they form a unique fingerprint.

Cite this