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8 mars 2023
- 2303.04522
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Economics - Theoretical EconomicsSujets proches
Economic theory Political economyCiter ce document
Peter Caradonna et al., « A Note on Invariant Extensions of Preorders », arXiv - économie
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Résumé
We consider the problem of extending an acyclic binary relation that is invariant under a given family of transformations into an invariant preference. We show that when a family of transformations is commutative, every acyclic invariant binary relation extends. We find that, in general, the set of extensions agree on the ranking of many pairs that (i) are unranked by the original relation, and (ii) cannot be ranked by invariance or transitivity considerations alone. We interpret these additional implications as the out-of-sample predictions generated by invariance, and study their structure.