Skip to main content
Article thumbnail
Location of Repository

Indecisiveness in behavioral welfare economics

By Michael Mandler

Abstract

Suppose an agent is modeled by a ‘behavioral welfare relation’that aggregates the di¤erent preferences that the agent reveals when choosing at di¤erent times or frames: x is better than y if the agent never chooses y when x is available and sometimes chooses x. In many behavioral applications, the options that are ranked superior to an alternative by this relation will be supported by multiple supporting price vectors. As a consequence, in a society of such agents the set of Pareto optimal allocations can be large and even have the same dimension as the set of all allocations. A policymaker will then not be able to use Pareto optimality to discriminate locally among allocations. A small distortion, for example, will call for no policy response

Topics: behavioral welfare economics, incomplete preferences, Pareto optimality
Year: 2008
OAI identifier: oai:CiteSeerX.psu:10.1.1.321.3162
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www2.warwick.ac.uk/fac/... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.