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2019

Spherical Preferences

Chambers, Christopher P., Echenique, Federico

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We introduce and study the property of orthogonal independence, a restricted additivity axiom applying when alternatives are orthogonal.

The axiom requires that the preference for one marginal change over another should be maintained after each marginal change has been shifted in a direction that is orthogonal to both.
We show that continuous preferences satisfy orthogonal independence if and only if they are spherical: their indifference curves are spheres with the same center, with preference being "monotone" either away or towards the center.
Spherical preferences include linear preferences as a special (limiting) case.

Spherical Preferences · Around

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