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Essays in decision theory and social choice

Posted on:2011-06-17Degree:Ph.DType:Dissertation
University:University of RochesterCandidate:Stovall, John EmeryFull Text:PDF
GTID:1449390002952783Subject:Economics
Abstract/Summary:
This dissertation contains axiomatic work in the fields of Decision Theory and Social Choice. In Chapter 1, we use a preference-over-menus framework to model a decision maker who is affected by multiple temptations. Our two main axioms on preference, Exclusion and Inclusion, identify when the agent would want to restrict his choice set and when he would want to expand his choice set. An agent who is tempted would want to restrict his choice set by excluding the normatively worst alternative of that choice set. Simultaneously, he would want to expand his choice set by including a normatively superior alternative. Our representation identifies the agent's normative preference and temptations, and suggests the agent is uncertain which of these temptations will affect him. We provide examples to illustrate how our model improves on those of Gul and Pesendorfer (2001) and Dekel, Lipman, and Rustichini (2009). Also, the statements "1 is more tempted than 2" and "1 is more virtuous than 2" are given behavioral meaning and related to our representation.In Chapter 2, we describe and characterize the family of asymmetric parametric division rules for the adjudication of conflicting claims. We take two approaches to characterize this family. The first approach follows the existing literature in defining a claims problem. As part of the characterization in this setting, we present two novel axioms which restrict how a division rule indirectly allocates between different versions of the same claimant. The second approach departs from the existing literature by expanding the definition of a claims problem to allow claimants to have multiple claims. The characterization in this setting has the same set of axioms, though modified for this expanded domain, imposed by Young (1987) to characterize the family of (symmetric) parametric division rules. We show that these two approaches are essentially equivalent.JEL Classification Numbers: D11 D63 D71 D81Keywords: Temptation Self-control Exclusion Inclusion Claims problems Bankruptcy Rationing Distributive justice Consistency Intrapersonal consistency...
Keywords/Search Tags:Choice, Decision, Claims
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