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Published in: Theory and Decision 4/2016

31-10-2015

A characterization of the generalized optimal choice set through the optimization of generalized weak utilities

Author: Athanasios Andrikopoulos

Published in: Theory and Decision | Issue 4/2016

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Abstract

It often happens that a binary relation R defined on a topological space \((X,\tau )\) lacks a continuous utility representation; see, e.g., (Peleg, in Econometrica 38:93–96, 1970, Example 2.1). But under an appropriate choice of a second topology \(\tau ^{*}\) on \((X,\tau )\), the existence of a semicontinuous utility representation on the bitopological space \((X,\tau ,\tau ^{*})\) can be ensured (see Remark 1 in the text). On the other hand, the traditional notion of weak utility representation as defined by Peleg (Econometrica 38:93–96, 1970) cannot be used to characterize the generalized optimal choice set, which requires binary relations that allow cycles. The main result in this paper states that for any generalized upper tc-semicontinuous, separable, pairwise spacious and consistent binary relation R defined on a bitopological space \((X,\tau _1,\tau _2)\) and any subset D of X, there exists a utility function which characterizes the generalized optimal choice set of R in D in terms of the maxima of this function.

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Footnotes
1
Given a relation R on a set X, one can define the set of optimal elements in three different ways: (i) The set of maximal elements of R is the set \(\mathfrak {M}(R)\) of alternatives that return R to any other alternatives, i.e.,
$$\begin{aligned} \mathfrak {M}(R)=\{x\in X\vert \quad \mathrm{for \ all} \quad y\in X\setminus \{x\}\ yRx\ \mathrm{implies}\ xRy\}. \end{aligned}$$
(ii) The undominated set of R is the set \(\mathfrak {U}(R)\) of alternatives to which no other bears R, i.e.,
$$\begin{aligned} \mathfrak {U}(R)=\{x\in X\vert \quad \mathrm{for \ all} \quad y\in X\setminus \{x\}\ \mathrm{not}\ yRx\}, \end{aligned}$$
and (iii) the dominant set of R is the set \(\mathfrak {U}(R)\) of alternatives that bear R to all others, i.e.,
$$\begin{aligned} \mathfrak {D}(R)=\{x\in X\vert \quad \mathrm{for \ all} \quad y\in X\setminus \{x\}\ xRy\}. \end{aligned}$$
Obviously, \(\mathfrak {U}(R)\cup \mathfrak {D}(R)\subseteq \mathfrak {M}(R)\) (for the relation between \(\mathfrak {M}(R), \mathfrak {U}(R)\) and \(\mathfrak {D}(R)\) see in Duggan (2012)).
 
2
If R is a relation on X, then the class \(\tau _{_1}=\{xR \vert x\in X\}\) where \(xR=\{y\in X\vert xRy\}\) is a subbase for a topology \(\tau _{_1}\) in X and the class \(\tau _{_2}=\{Rx \vert x\in X\}\) where \(Rx=\{y\in X\vert yRx\}\) is a subbase for a topology \(\tau _{_2}\) in X. Therefore, to any binary relation R corresponds a bitopological space \((X,\tau _{_1},\tau _{_2})\). If R is asymmetric, then \(\tau _{_1}\ne \tau _{_2}\) in general. But, if R is symmetric, then \(\tau _{_1}=\tau _{_2}\), i.e., if \(y\in xR\) then \(y\in Rx\) and so \(Rx=xR\) for all \(x\in X\).
 
3
According to Cantor (1895), if X is a countably infinite set and \(\preceq \) is a linear order on X such that X is dense (in itself) and does not contain maximum and minimum elements with respect to \(\preceq \), then \((X,\preceq )\) is order isomorphic to \(((0,1)\cap \mathcal {Q}\ ,\le )\).
 
4
A topological space that is equipped with a complete preorder is called a linearly preordered topological space.
 
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Metadata
Title
A characterization of the generalized optimal choice set through the optimization of generalized weak utilities
Author
Athanasios Andrikopoulos
Publication date
31-10-2015
Publisher
Springer US
Published in
Theory and Decision / Issue 4/2016
Print ISSN: 0040-5833
Electronic ISSN: 1573-7187
DOI
https://doi.org/10.1007/s11238-015-9517-9

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