TY - UNPB
T1 - Nontransitive Preferences and Stochastic Rationalizability
T2 - A Behavioral Equivalence
AU - Fosgerau, Mogens
AU - Rehbeck, John
PY - 2023/4/28
Y1 - 2023/4/28
N2 - 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."
AB - 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."
KW - econ.TH
U2 - 10.48550/arXiv.2304.14631
DO - 10.48550/arXiv.2304.14631
M3 - Preprint
BT - Nontransitive Preferences and Stochastic Rationalizability
ER -