This article uses Lancaster’s characteristics approach to rank sets of alternative combinations of commodity characteristics. It is assumed that there exists a reference point or reference level from which the individual evaluates set expansions in appropriate directions. We provide an axiomatic characterization for such a case.
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Gaertner, W., Xu, Y. Reference-dependent rankings of sets in characteristics space. Soc Choice Welf 37, 717–728 (2011). https://doi.org/10.1007/s00355-011-0569-7