The Leveling Axiom
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.
Revealed prederences, law
Theory and Decision
Sandroni, Alvaro and Katz, Leo, "The Leveling Axiom" (2023). All Faculty Scholarship. 3181.