Incompleteness
Abstract
Incompleteness of preferences is an intuitive and widespread phenomenon. It directly conflicts with the Completeness Axiom of classical DT and with its typical choice-theoretical basis. In this chapter, we discuss the main cognitive and behavioral sources that can motivate the weakening of the Completeness Axiom and the extension of the Revealed Preference Paradigm in order to accommodate incomplete preferences. We distinguish between incompleteness due to objective features of options and that due to epistemic uncertainty (the latter giving rise to preference for flexibility). This distinction partially overlaps with modeling the sources of incompleteness in tastes or beliefs. This leads us to discuss the seeming ...
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