Rationalizing Path-Independent Choice Rules

Speaker: Prof İsa Hafalır

Affiliation: University of Technology Sydney

Location: Level 6 Boardroom, Colin Clark Building (#39), St Lucia Building

Zoom: https://uqz.zoom.us/j/82603079317

Abstract: Path independence is arguably one of the most important properties of choice rules in economic theory. We show that a choice rule is path independent if and only if it is rationalizable by a utility function satisfying ordinal concavity, a condition closely related to concavity notions in discrete convex analysis. We also provide a rationalization result for choice rules that satisfy path independence and the law of aggregate demand