Applications help teach theory. Two generations of students have learned to appreciate the power of indifference-curve analysis through the in-kind transfers versus income transfers exercise in the typical consumer-theory chapter of their textbooks and the negative income tax versus guaranteed income analysis in the factor-input chapter (Mansfield 1993; Browning and Zupan 1996; Pindyck and Rubi...

To whatever extent we believe that monolingualism exists in this world, and/or it has an effect on literary work various languages, is important to ask whether such monolingualism(s) operate through brute suppression of other attentive control them, or half-hearted indifference them. Although state monolingualist practices differ from place and will reliably express a mix the inclinations outli...

Complete pre-orders can be characterized in terms of the transitivity of the corresponding strict preference and indifference relations. In this paper, we investigate this characterization in a fuzzy setting. We consider two types of completeness (weak completeness and strong completeness) and decompose a fuzzy pre-order by means of an indifference generator, in particular a Frank t-norm. In th...

a r t i c l e i n f o a b s t r a c t JEL classification: D01 D11 Keywords: Incomplete preferences Indifference Sequential rationality Revealed preference Incommensurability We use an agent's strict preferences to define indifference and incompleteness relations that identify the sequences of trades that are rational to undertake. If an agent makes sequences of trades of options labeled indiffe...

We study the exponential utility indifference valuation of a contingent claim H when asset prices are given by a general semimartingale S. Under mild assumptions on H and S, we prove that a no-arbitrage type condition is fulfilled if and only if H has a certain representation. In this case, the indifference value can be written in terms of processes from that representation, which is useful in ...

We consider the stable marriage problem where participants are permitted to express indifference in their preference lists (i.e., each list can be partially ordered). We prove that, in an instance where indifference takes the form of ties, the set of strongly stable matchings forms a distributive lattice. However, we show that this lattice structure may be absent if indifference is in the form ...

Selection procedures help identify the best of a finite set of simulated alternatives. The indifference-zone approach focuses on the probability of correct selection, but the expected opportunity cost of a potentially incorrect decision may make more sense in business contexts. This paper provides the first selection procedure that guarantees an upper bound for the expected opportunity cost, in...