A Money-Pump for Acyclic Intransitive Preferences
2010 (English)In: Dialectica, ISSN 0012-2017, E-ISSN 1746-8361, Vol. 64, no 2, 251-257 p.Article in journal (Refereed) Published
The standard argument for the claim that rational preferences are transitive is the pragmatic money-pump argument. However, a money-pump only exploits agents with cyclic strict preferences. In order to pump agents who violate transitivity but without a cycle of strict preferences, one needs to somehow induce such a cycle. Methods for inducing cycles of strict preferences from non-cyclic violations of transitivity have been proposed in the literature, based either on offering the agent small monetary transaction premiums or on multi-dimensional preferences. This paper argues that previous proposals have been flawed and presents a new approach based on the dominance principle.
Place, publisher, year, edition, pages
2010. Vol. 64, no 2, 251-257 p.
IdentifiersURN: urn:nbn:se:kth:diva-27278DOI: 10.1111/j.1746-8361.2010.01230.xISI: 000279021400008ScopusID: 2-s2.0-77953935910OAI: oai:DiVA.org:kth-27278DiVA: diva2:377583
QC 201012142010-12-142010-12-092012-03-20Bibliographically approved