On the volume-ranking of opportunity sets in economic environments
| Autor: | Ernesto Savaglio, Stefano Vannucci |
|---|---|
| Rok vydání: | 2008 |
| Předmět: |
Economics and Econometrics
Opportunity sets valuation volume total preordering Geometric probability jel:D63 Regular polygon jel:D31 jel:I31 Bliss point Ranking Euclidean geometry Economics Production (economics) Valuation (measure theory) Set (psychology) Mathematical economics Social Sciences (miscellaneous) |
| Zdroj: | Social Choice and Welfare. 33:1-24 |
| ISSN: | 1432-217X 0176-1714 |
| DOI: | 10.1007/s00355-008-0343-7 |
| Popis: | We provide a characterization of the volume-ranking of opportunity sets as defined on the set of all polyconvex sets, i.e. finite unions of convex, compact, Euclidean sets. In fact, such a domain is large enough to encompass most of the opportunity sets typically encountered in economic environments, including non-linear or even non-convex budget sets, and opportunity sets arising from production sets. Our result relies on a valuation-based volume-characterization theorem due to Klain and Rota (Introduction to Geometric Probability, Cambridge University Press, Cambridge, 1997) and helps to highlight some quite unusual conditions under which the volume-ranking can be justified as a freedom-ranking of opportunity sets. Therefore, it may also help to understand why the latter has been so conspicuously ignored in welfare analysis. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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