2023/11/14 by Harvey Lederman, Lederman, Harvey
Decision Sciences · Economics, Econometrics and Finance · Mathematics · #Axiom #Axiom independence #Decision-Making and Behavioral Economics #Dominance (genetics) #Econometrics #Economic theories and models #Economics #Expected utility hypothesis #Game Theory and Voting Systems #Independence (probability theory) #Lottery #Mathematical economics #Mathematics #Microeconomics #Outcome (game theory) #Statistics
paper · pdf · doi:10.48550/arxiv.2311.08471
published in arXiv (Cornell University) (Cornell University)
openalex publication_date 2023/11/14 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper introduces the axiom of Negative Dominance, stating that if a lottery f is strictly preferred to a lottery g, then some outcome in the support of f is strictly preferred to some outcome in the support of g. It is shown that if preferences are incomplete on a sufficiently rich domain, then this plausible axiom, which holds for complete preferences, is incompatible with an array of otherwise plausible axioms for choice under uncertainty. In particular, in this setting, Negative Dominance conflicts with the standard Independence axiom. A novel theory, which includes Negative Dominance, and rejects Independence, is developed and shown to be consistent.