The Leveling Axiom
Document Type
Article
Publication Date
5-24-2023
Abstract
We characterize general constraints under which rational choices are characterized by asymmetric revealed preferences. A key feature of our main characterization result is expressed by the leveling axiom. We also consider the special case of a law-abiding decision maker who chooses optimally among legal options. We show that the law does not necessarily satisfy the leveling axiom and, therefore, transitivity adds empirical content to law-abiding choices.
Keywords
Revealed prederences, law
Publication Title
Theory and Decision
Repository Citation
Sandroni, Alvaro and Katz, Leo, "The Leveling Axiom" (2023). All Faculty Scholarship. 3181.
https://doi.org/10.1007/s11238-023-09943-x