Characterizing lexicographic preferences

We characterize lexicographic preferences on product sets of finitely many coordinates. The main new axiom is a robustness property. It roughly requires this: Suppose x is preferred to y; many of its coordinates indicate that the former is better and only a few indicate the opposite. Then the decisi...

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Bibliographic Details
Published in:Journal of mathematical economics 2016-03, Vol.63, p.54-61
Main Authors: Petri, Henrik, Voorneveld, Mark
Format: Article
Language:English
Subjects:
Characterization
Decision analysis
Lexicographic order
Lexicographic preferences
Preferences
Product choice
Studies
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Summary:We characterize lexicographic preferences on product sets of finitely many coordinates. The main new axiom is a robustness property. It roughly requires this: Suppose x is preferred to y; many of its coordinates indicate that the former is better and only a few indicate the opposite. Then the decision maker is allowed a change of mind turning one coordinate in favor of x to an indifference: even if one less argument supports the preference, the fact that we started with many arguments in favor of x suggests that such a small change is not enough to give rise to the opposite preference.
ISSN:0304-4068
1873-1538
DOI:10.1016/j.jmateco.2015.12.003