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On the utility representation of asymmetric single-peaked preferences

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posted on 20.04.2011, 13:44 by Francisco Martínez-Mora, M. Socorro Puy
We introduce two natural types of asymmetric single-peaked preferences, which we name biased-above and biased-below, depending on whether the asymmetry (or preference-bias) favors alternatives above or below the peak. We de ne a rich family of utility functions, the generalized distance-metric utility functions, that can represent preferences biased-above or biased-below, besides accommodating any degree of asymmetry. We also identify restrictions on di¤erentiable utility representations that guarantee the underlying preferences to be biased-above or below, and allow to compare degrees of asymmetry. Finally, we consider a speci c application agents preferences over government size to illustrate the role of factors such as risk aversion and tax distortions in shaping asymmetric preferences.

History

Publisher

Dept. of Economics, University of Leicester

Available date

20/04/2011

Publisher version

http://www.le.ac.uk/ec/research/discussion/Papers2011.html

Book series

Papers in Economics;11/18

Language

en