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Dynamic Choice Mechanisms

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Abstract

A dynamic choice mechanism (e.g. sophisticated choice) is a rule transforming a sequence of orderings into actual choices. The dynamic choice literature analysing such rules is restricted to the case of strict preferences. The present paper allows also for weak preferences. This generalisation is necessary since in dynamic utility models decision makers are typically endowed with orderings which can be represented by continuous utility functions. Such a representation, however, requires the orderings to be a weak ordering. In the presence of weak orderings the classical choice mechanisms have to be re-examined. This paper develops and analyses new choice mechanisms and relates them to the notion of a subgame-perfect equilibrium.

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Authors and Affiliations

  1. Faculty of Economics, University of Magdeburg, Postfach 4120, D-39016, Magdeburg, Germany Phone

    Ludwig von Auer

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  1. Ludwig von Auer
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von Auer, L. Dynamic Choice Mechanisms. Theory and Decision 46, 295–312 (1999). https://doi.org/10.1023/A:1005079106344

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  • DOI: https://doi.org/10.1023/A:1005079106344

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