On preferences with infinitely many subjective states

Kalyan Chatterjee, R. Vijay Krishna

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Models with subjective state spaces have been extremely useful in capturing novel psychological phenomena that consist of both a preference for flexibility and for commitment. Interpreting the utility representations of preferences as capturing these phenomena requires one to use the notion of a sign of a state. For linear preferences, we completely characterise the sign of a state in terms of its analytic representation as an integral with respect to a signed measure. In models with finitely many states, a state is either positive or negative, but never both. We show that in models with infinitely many states, a state can be both positive and negative. Thus, models with finitely many states may not capture all the behavioural features of an infinite model. Our methods are also useful in constructing utility functionals over menus with desired local properties.

Original languageEnglish (US)
Pages (from-to)85-98
Number of pages14
JournalEconomic Theory
Volume46
Issue number1
DOIs
StatePublished - Jan 1 2011

Fingerprint

Integral
Preference for flexibility
Subjective state space
Psychological
Utility representation
Menu

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Chatterjee, Kalyan ; Krishna, R. Vijay. / On preferences with infinitely many subjective states. In: Economic Theory. 2011 ; Vol. 46, No. 1. pp. 85-98.
@article{df51a2dc6a45410d91fa54c65311fc8e,
title = "On preferences with infinitely many subjective states",
abstract = "Models with subjective state spaces have been extremely useful in capturing novel psychological phenomena that consist of both a preference for flexibility and for commitment. Interpreting the utility representations of preferences as capturing these phenomena requires one to use the notion of a sign of a state. For linear preferences, we completely characterise the sign of a state in terms of its analytic representation as an integral with respect to a signed measure. In models with finitely many states, a state is either positive or negative, but never both. We show that in models with infinitely many states, a state can be both positive and negative. Thus, models with finitely many states may not capture all the behavioural features of an infinite model. Our methods are also useful in constructing utility functionals over menus with desired local properties.",
author = "Kalyan Chatterjee and Krishna, {R. Vijay}",
year = "2011",
month = "1",
day = "1",
doi = "10.1007/s00199-009-0503-8",
language = "English (US)",
volume = "46",
pages = "85--98",
journal = "Economic Theory",
issn = "0938-2259",
publisher = "Springer New York",
number = "1",

}

On preferences with infinitely many subjective states. / Chatterjee, Kalyan; Krishna, R. Vijay.

In: Economic Theory, Vol. 46, No. 1, 01.01.2011, p. 85-98.

Research output: Contribution to journalArticle

TY - JOUR

T1 - On preferences with infinitely many subjective states

AU - Chatterjee, Kalyan

AU - Krishna, R. Vijay

PY - 2011/1/1

Y1 - 2011/1/1

N2 - Models with subjective state spaces have been extremely useful in capturing novel psychological phenomena that consist of both a preference for flexibility and for commitment. Interpreting the utility representations of preferences as capturing these phenomena requires one to use the notion of a sign of a state. For linear preferences, we completely characterise the sign of a state in terms of its analytic representation as an integral with respect to a signed measure. In models with finitely many states, a state is either positive or negative, but never both. We show that in models with infinitely many states, a state can be both positive and negative. Thus, models with finitely many states may not capture all the behavioural features of an infinite model. Our methods are also useful in constructing utility functionals over menus with desired local properties.

AB - Models with subjective state spaces have been extremely useful in capturing novel psychological phenomena that consist of both a preference for flexibility and for commitment. Interpreting the utility representations of preferences as capturing these phenomena requires one to use the notion of a sign of a state. For linear preferences, we completely characterise the sign of a state in terms of its analytic representation as an integral with respect to a signed measure. In models with finitely many states, a state is either positive or negative, but never both. We show that in models with infinitely many states, a state can be both positive and negative. Thus, models with finitely many states may not capture all the behavioural features of an infinite model. Our methods are also useful in constructing utility functionals over menus with desired local properties.

UR - http://www.scopus.com/inward/record.url?scp=78650786756&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=78650786756&partnerID=8YFLogxK

U2 - 10.1007/s00199-009-0503-8

DO - 10.1007/s00199-009-0503-8

M3 - Article

AN - SCOPUS:78650786756

VL - 46

SP - 85

EP - 98

JO - Economic Theory

JF - Economic Theory

SN - 0938-2259

IS - 1

ER -