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Preference Representations

This section uses an array of preference structures and their quantitative representations to illustrate our subject and provide points of departure for later sections. We first outline three factors that differentiate among various representations and contain important definitions.

Factor 1. Cardinality of X. The main distinction is among finite, countable (finite or denumerable), and uncountably infinite X.

Factor 2. Ordering properties of tex2html_wrap_inline1051 . The following four main categories are common. We say that tex2html_wrap_inline1051 on X is:

acyclic if its transitive closure is irreflexive (we never have tex2html_wrap_inline1145 for finite t);

a partial order if it is transitive ( tex2html_wrap_inline1149 whenever tex2html_wrap_inline1151 and tex2html_wrap_inline1153 ) and irreflexive (we never have tex2html_wrap_inline1155 );

a weak order if it is a partial order for which tex2html_wrap_inline1057 is transitive;

a linear order if it is a weak order or partial order for which tex2html_wrap_inline1057 is the identity relation.

Szpilrajn's theorem (1930) implies that an acyclic tex2html_wrap_inline1051 has a linear extension, i.e., is included in some linear order. If tex2html_wrap_inline1051 is a weak order then tex2html_wrap_inline1057 is an equivalence relation (reflexive, symmetric, transitive) and the set tex2html_wrap_inline1167 of equivalence classes in X determined by tex2html_wrap_inline1057 is linearly ordered by tex2html_wrap_inline1173 on tex2html_wrap_inline1167 defined by tex2html_wrap_inline1177 if tex2html_wrap_inline1151 for some (hence for all) tex2html_wrap_inline1181 and tex2html_wrap_inline1183 .

Factor 3. Representational uniqueness. Suppose the quantitative structure of the representation uses only one real-valued function u on X. Assume that u satisfies the representation, and let U denote the set of all tex2html_wrap_inline1193 that satisfy it. We then say that u is unique up to:

(i) an ordinal transformation if tex2html_wrap_inline1197 for all tex2html_wrap_inline1049 , tex2html_wrap_inline1201 ;

(ii) a positive affine transformation if tex2html_wrap_inline1197 there are real numbers a > 0 and b such that v(x) = au(x)+b for all tex2html_wrap_inline1211 ;

(iii) a proportionality transformation if tex2html_wrap_inline1197 there is an tex2html_wrap_inline1133 such that v(x) = au(x) for all tex2html_wrap_inline1211 .

When a representation uses more than one real-valued function, the same definitions apply to individual functions although additional restrictions on admissible transformations usually obtain when the functions are considered jointly. For example, if tex2html_wrap_inline1221 and the representation uses tex2html_wrap_inline1223 for tex2html_wrap_inline1225 , we say that the tex2html_wrap_inline1227 are unique up to similar positive affine transformations if another set tex2html_wrap_inline1229 of tex2html_wrap_inline1231 also satisfies the representation if and only if there is an tex2html_wrap_inline1133 and tex2html_wrap_inline1235 such that tex2html_wrap_inline1237 for all tex2html_wrap_inline1239 and all tex2html_wrap_inline1241 .

Other distinguishing factors include special structures for X, the presence or absence of operations like tex2html_wrap_inline1045 , and whether a representation involves specialized properties for its real-valued functions such as continuity or linearity. Continuity is often associated with topological structures as described, for example, in Fishburn (1970, 1989, 1994) and Wakker (1989), and it will not play a prominent role in our present discussion, which is primarily algebraic.

The rest of the section outlines traditional topics in preference theory, where u in a representation is usually referred to as a utility function. Theorems that link utility representations to qualitative preference structures by means of assumptions or axioms for preference are noted. Most proofs are available in Fishburn (1970) or in references cited in Fishburn (1989, 1994). I include a few proof comments here to illustrate the representations.




next up previous
Next: Ordinal measurement Up: No Title Previous: Introduction

Peter.Fishburn