[WP-018] Rationalizing Path-Independent Choice
Author
Koji Yokote, Isa E. Hafalir, Fuhito Kojima, M. Bumin Yenmez
Abstract
Path independence is arguably one of the most important choice rule properties in economic theory. We show that a choice rule is path independent if and only if it is rationalizable by a utility function satisfying ordinal concavity, a concept closely related to concavity notions in discrete mathematics. We also provide a rationalization result for choice rules that satisfy path independence and the law of aggregate demand.
