2025/05/24 by Johan E. Gustafsson · 1 voice
Economics, Econometrics and Finance · #Economic theories and models
paper · pdf · doi:10.1007/s11238-025-10025-3
openalex publication_date 2025/05/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Abstract Completeness says that, for every pair of prospects, at least one of the prospects is at least as preferred as the other. I present a new money-pump argument that Completeness is a requirement of rationality. In comparison with earlier money-pump arguments for Completeness, this argument relies on a unidimensional form of stochastic dominance and the behavioural assumption that agents pick in a probabilistic manner when no option is optimal. Moreover, unlike some of the previous arguments, the new argument is based on a forcing money pump, that is, an exploitation scheme where the agent is rationally required at each step to go along with the scheme.