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Spherical Preferences

Chambers, Christopher P. and Echenique, Federico (2019) Spherical Preferences. . (Unpublished)

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We introduce and study the property of orthogonal independence, a restricted additivity axiom applying when alternatives are orthogonal. The axiom requires that the preference for one marginal change over another should be preferred after each marginal change has been shifted in a direction that is orthogonal to both. We show that continuous preferences satisfy orthogonal independence if and only if they are spherical: their indifference curves are spheres with the same center, with preference being "monotone" moving away from the center. Spherical preferences include linear preferences as a special (limiting) case. We discuss different applications to economic and political environments. Our result delivers Euclidean preferences in models of spatial voting, quadratic welfare aggregation in social choice, and expected utility in models of choice under uncertainty. As an extension, we consider an endogenous notion of orthogonality.

Item Type:Report or Paper (Discussion Paper)
Related URLs:
URLURL TypeDescription Paper
Chambers, Christopher P.0000-0001-8253-0328
Echenique, Federico0000-0002-1567-6770
Additional Information:Echenique thanks the National Science Foundation for its support through the grants SES 1558757 and CNS 1518941.
Funding AgencyGrant Number
Record Number:CaltechAUTHORS:20190626-145326274
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:96751
Deposited By: Tony Diaz
Deposited On:26 Jun 2019 22:00
Last Modified:03 Oct 2019 21:25

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