# Tag Info

## Hot answers tagged choice-theory

Accepted

### Condorcet's paradox: Is the majority rule transitive?

As you stated, transitivity is that overall $x \succeq y$ and $y \succeq z$ implies $x \succeq z$. I will show an example where majority rule isn't transitive and hopefully it will answer your ...
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### Are terrorists rational?

I guess you might already know this, but I wanted to add a little detail to the other answers for the sake of any layman who comes here and gets the wrong end of the stick. What is meant by ...
• 16.6k
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### (Preference Relation/Set) Continuous $\succsim$ imply closedness of upper and lower contour sets

Looking more closely at your question, I think things should not be overly complicated. From Mas-Colell et.al. Definition 3.C.1: The preference relation $\succsim$ on X is continuous if it is ...
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### The 'Economic Man' (Reference Request)

I would point you firstly to work pioneered by the late Gary Becker on applying the principles of economic optimisation to non-market behaviour. Becker's insight was that the kinds of trade-offs ...
• 16.6k
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### Can the Certainty Equivalent be negative?

If you start out with €0, then the certainty equivalent of losing €2.5 with probability 1 is -€2.5. Your exercise basically asks you to calculate what difference winning the lottery with a small ...
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### Are terrorists rational?

We can not prove terrorists are not rational. We can only have a failure to find a tractable utility function that adequately models their behavior. On the practical side, one cannot see enough ...
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### Are terrorists rational?

Ron Wintrobe has a book on Rational Extremism, which explains how behavior of terrorists, in particular suicide bombers may be "rationalized". He theorizes that the act of blowing up oneself is a form ...
• 14.4k
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### Relation between linear utility function and U=max{x,y}

The optimal choice set for a max function and a perfect substitutes function with equal relative prices share some solutions [i.e, boundary solutions], but in general, the indifference curves, and ...
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### Vocabulary/Name for Utility of a Set of Choices

What you seem to be interested is the subfield of decision theory that goes by the name of "menu choice." The starting point of this literature is the paper Kreps, David M. "A representation theorem ...
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### a risk lover agent preferences and the preference of risk natural agent may be the same

Another way of looking at this problem is to consider the means and variances of the lotteries. A risk averse agent (RA) likes high mean and low variance A risk neutral agent (RN) likes high mean ...
• 14.4k
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### Exact definition of one-player Bayesian Correlated Equilibrium

The concept of the BCE from their 2016 paper is similar to what you have. I think Bergemann and Morris' intuitive explanation is valuable so I'll paraphrase it here. Each player in the game has a ...
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