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Even relatively poor people oppose high rates of redistribution because of the anticipation that they, or their children, may make it up the income ladder. This “prospect of upward mobility” (POUM) hypothesis is often advanced as one of the factors limiting the extent of redistribution in democracies. But is it compatible with all voters holding rational(More)
Universidad de Montevideo and New York University Istituto di Metodi Quantitativi Università Bocconi Department of Economics New York University September, 2001 for a potentially incomplete preference relation over lotteries by means of a set of von Neumann-Morgenstern utility functions. It is shown that, when the prize space is a compact metric space, a(More)
Motivated by the empirical findings concerning the importance of one’s current situation on her choice behavior, the main objective of this paper is to propose a rational choice theory that allows for the presence of a status quo bias, and that incorporates the standard choice theory as a special case. We follow a revealed preference approach, and obtain(More)
We consider the problem of representing a (possibly) incomplete preference relation by means of a vector-valued utility function. Continuous and semicontinuous representation results are reported in the case of preference relations that are, in a sense, not “too incomplete.” These results generalize some of the classical utility representation theorems of(More)
For a society that consists of at least three individuals, we show that a social choice rule is Maskin monotonic if and only if it is Nash implementable by means of a mechanism that is stochastic or a mechanism that contains (arbitrary) awards. In equilibrium, the mechanisms do not have any stochastic elements and do not involve any awards. Thus, loosely(More)
Interest in economic mobility stems largely from its perceived role as an equalizer of opportunities, though not necessarily of outcomes. In this paper we show that this view leads very naturally to a methodology for the measurement of social mobility which has strong parallels with the theory of progressive taxation. We characterize opportunity–equalizing(More)
A commonly held belief in economics is that an individual’s preferences that are revealed by her choices must be complete. This paper takes issue with this position by showing that one may be able to distinguish between indifference and indecisiveness of an agent upon observing her choice behavior. We relax the standard Weak Axiom of Revealed Preferences(More)
We study certain classes of supermodular and submodular games which are symmetric with respect to material payoffs but in which not all players seek to maximize their material payoffs. Specifically, a subset of players have negatively interdependent preferences and care not only about their own material payoffs but also about their payoffs relative to(More)
We study the evolution of preference interdependence in aggregative games which are symmetric with respect to material payo¤s but asymmetric with respect to player objective functions. We identify a class of aggregative games whose equilibria have the property that the players with interdependent preferences (who care not only about their own material(More)