On the likelihood of cyclic comparisons

Ariel Rubinstein, Uzi Segal

    Research output: Contribution to journalArticle

    Abstract

    One problem caused by cycles of choice functions is indecisiveness-decision makers will be paralyzed when they face choice sets with more than two options. We investigate the procedure of "random sampling" where the alternatives are random variables. When comparing any two alternatives, the decision maker samples each of the alternatives once and ranks them according to the comparison between the two realizations. We show that while this procedure may lead to violations of transitivity, the probability of such cycles is bounded from above by 827. Even lower bounds are obtained for some other related procedures.

    Original languageEnglish (US)
    Pages (from-to)2483-2491
    Number of pages9
    JournalJournal of Economic Theory
    Volume147
    Issue number6
    DOIs
    StatePublished - Nov 1 2012

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    Keywords

    • Paradox of nontransitive dice
    • Preference formation
    • Transitivity

    ASJC Scopus subject areas

    • Economics and Econometrics

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