Lexicographic Preferences over Random Availability Functions

TL;DR

This paper characterizes lexicographic preferences over random availability functions using axioms like strong monotonicity and independence, providing a foundational understanding of decision-making under uncertainty.

Contribution

It offers an axiomatic framework for lexicographic preferences over random availability functions, extending microeconomic preference theory.

Findings

Axiomatic characterization of lexicographic preferences

Strong monotonicity equivalent to strong dominance property

Weaker independence assumption suffices for characterization

Abstract

We provide an axiomatic characterization of lexicographic preferences over the set of all random availability functions using two assumptions. The first assumption is strong monotonicity, which in our framework is equivalent to the strong dominance property in microeconomics. The second assumption is independence of worse alternatives and we show that a weaker version of the same suffices for our purpose.