Tuesday, April 17, 2007

Double-peaked preferences

So, among other things, Arrow's Impossibility Theorem shows that if you've got individuals with double-peaked preferences, then a simple majority voting procedure will not yield consistent outcomes. While it's easy to construct someone with double-peaked preferences on a non-linear spectrum-- ranking favorite sports teams or colors, for example-- it's generally the case that double-peaked preferences don't exist in voting for candidates. It's vastly oversimplifying the voting process, but if you cared only about one dimension of politics-- say, political leaning-- then you probably won't prefer a radical republican and a radical democrat to someone in the middle. People could then argue that the assumption of double-peaked preferences is unrealistic, and hence, Arrow's situation doesn't describe the vast majority of real life. (Though assuming that all political decisions are made on a one-dimensional margin might be just as unrealistic.) Fair enough. It's not like there's a shortage of ways to cut down majority-rules voting systems.

What's interesting is that I've seem to run across a couple of situations recently where I (and a professor of mine) have, quite clearly, double-peaked preferences. Maybe I'm missing something. I also don't think that it matters that there's no voting involved in these scenarios-- the issue above was with the accuracy of double-peaked preferences in representing real life.

They're both similar-- one involving my car, the other involving a house that a professor of mine recently bought. My car's warranty expires next month, so I took it down for a routine checkup last week. With regards to the viability of what parts were under warranty, I either want them to be functioning very well or very poorly-- either way, I end up with a car running well (on its own or immediately fixed) at no additional cost to me. What I want least is my car to be running just well enough that they choose not to fix anything. So I want it in great shape or poor shape most, but least favorable to me is a moderately well running car. That's a double-peaked preference. (Principal/agent problems of the mechanic are tangential to my ultimate preference for the condition of my car.)

The same idea holds for the recently purchased house. New houses get checked out by an independent third party that determines if everything is in working order. If everything is fine, so be it-- if not, then the seller is responsible for the repairs. This creates the same incentives to the buyer of the house as to the driver of the car-- either you want the house in tip-top shape, or in poor condition such that it will get fixed by the seller. The worst-case scenario is a house that comes in just above the fix-it line. Again, we've got double-peaked preferences.

Maybe double-peaked preferences are a bit more common than I had previously thought.

45 comments:

Christian G. Warden said...

I've never heard of double-peaked preferences, but in the two examples you list, it sounds like you have a single preference, for a car or house in good condition. In order to have a car in good shape, you need more information about the condition of the car so you take it to the shop. If it's in good or bad shape, you don't have to do anything other than wait for the mechanic to return it to you in good shape. If it's in OK condition, you must decide to either keep driving it in the condition it's in, pay to bring it up to good condition, or act to render it in poor condition so it will be repaired while still under warranty. At this point, you face a choice of preferences.

The two peaks aren't really preferences in an economic sense since they can't be expressed. They are simply wishes.

But even if you think of them as preferences, it doesn't make sense to rank good, moderate, and poor on a single scale since what you really prefer is: 1) good-condition 2) poor-condition-to-be-fixed-under-warranty 3) moderate-condition-not-subject-to-warranty-repair. Good, moderate, and poor aren't commensurable as there are additional underlying assumptions.

Viagra Online said...

It's an interesting situation. I think you need more time to share your knowledge. I think we can't ignore the style to redact that you bring into this amazing blog. All is about favoritism and preferences, as everything in this modernity. 23jj

Viagra Online said...

it's an excellent point of view, I can't believe this style, specially if we're talking about the voting process. As you really know, in a representative government, voting commonly implies election: a way for an electorate to select among candidates for office. 23jj

afrogshop said...

Thanks so much for your article, quite helpful material.

Anonymous said...


what a fantastic locate - can't wait to determine what you 2 come up with! D3 Gold


Buy GW2 Gold

Anonymous said...

Right now it seems like BlogEngine is the preferred blogging platform
available right now. (from what I've read) Is that what you are using on your blog?

Here is my homepage - http://Www.Hellovideo.tv/TiffanyXO

Anonymous said...

I love your blog.. very nice colors & theme.
Did you design this website yourself or did you hire someone to do it for you?

Plz answer back as I'm looking to design my own blog and would like to find out where u got this from. thanks a lot

Visit my site - 1

Anonymous said...

We're a gaggle of volunteers and starting a brand new scheme in our community. Your web site provided us with valuable info to work on. You have done a formidable process and our whole neighborhood will likely be grateful to you.

My page; Evgeni Malkin Black Jersey

Anonymous said...

Its such as you learn my thoughts! You seem to understand
a lot about this, like you wrote the e-book in
it or something. I feel that you just could do with a few % to power the message home a bit,
however other than that, this is fantastic blog. A fantastic read.
I'll definitely be back.

My blog; nfl jerseys cheap

Anonymous said...

It's awesome for me to have a web page, which is good for my knowledge. thanks admin

Stop by my weblog - Cheap Jerseys

Anonymous said...

Awesome blog! Do you have any tips and hints for aspiring writers?
I'm planning to start my own blog soon but I'm a little lost on everything.
Would you advise starting with a free platform like Wordpress or go
for a paid option? There are so many options out there that I'm completely overwhelmed .. Any suggestions? Thank you!

my webpage; Louis Vuitton Outlet

Anonymous said...

What's up to all, it's really a pleasant for me
to go to see this site, it includes important Information.


My website: Authentic Kris Letang Jersey

Anonymous said...

Hmm it appears like your website ate my first comment (it was super long) so I guess I'll just sum it up what I submitted and say, I'm thoroughly enjoying
your blog. I as well am an aspiring blog blogger but I'm still new to the whole thing. Do you have any recommendations for novice blog writers? I'd genuinely appreciate it.



Stop by my web blog :: http://wealthwayonline.com

Anonymous said...

Post writing is also a excitement, if you be acquainted
with then you can write otherwise it is complex to write.


My web blog: Mario Lemieux Authentic Jersey

Anonymous said...

Thankfulness to my father who stated to me regarding this website, this webpage is in fact amazing.


Feel free to visit my homepage - Wholesale Jerseys

Anonymous said...

obviously like your website but you need to test the spelling on several of
your posts. Several of them are rife with spelling issues and I to find it very bothersome
to tell the truth nevertheless I'll surely come again again.

Here is my web-site - sell

Anonymous said...

This site was... how do you say it? Relevant!! Finally I have found something which helped me.
Appreciate it!

Here is my blog post; Http://Pornharvest.Com/Index.Php?M=2326849

Anonymous said...

What's Happening i am new to this, I stumbled upon this I have discovered It positively helpful and it has aided me out loads. I'm
hoping to contribute & assist different users like its aided me.

Good job.

Here is my blog post; Louis Vuitton Handbags Outlet

Anonymous said...

Hey there, I think your website might be having browser compatibility issues.
When I look at your blog in Chrome, it looks fine but
when opening in Internet Explorer, it has some overlapping.
I just wanted to give you a quick heads up! Other
then that, amazing blog!

My homepage :: Air Jordan

Anonymous said...

My partner and I stumbled over here coming from a different page and thought I might as
well check things out. I like what I see so i am just
following you. Look forward to going over your web page again.


My web-site :: http://www.tedxyse.com/

Anonymous said...

It's difficult to find experienced people in this particular topic, however, you seem like you know what you're talking about!
Thanks

my page - Louis Vuitton Bags

Anonymous said...

We are a bunch of volunteers and opening a brand new scheme in our community.
Your web site provided us with valuable info to work
on. You have performed an impressive process and our entire community will be thankful to you.



my web page - Louis Vuitton Outlet

Anonymous said...

It's difficult to find educated people for this subject, but you seem like you know what you're talking about!
Thanks

Here is my homepage; Abercrombie Paris

Anonymous said...

Thank you a bunch for sharing this with all folks
you actually recognise what you are talking about!
Bookmarked. Please additionally talk over with my site =).
We could have a hyperlink exchange arrangement between us

Review my web blog :: Sac Guess Pas Cher

Anonymous said...

Aw, this was an exceptionally good post. Spending some time and
actual effort to produce a good article… but what can I say…
I put things off a whole lot and don't seem to get nearly anything done.

Feel free to surf to my web-site :: Sac Louis Vuitton Pas Cher

Anonymous said...

Undeniably believe that which you said. Your favorite reason appeared to
be on the net the easiest thing to be aware of.

I say to you, I certainly get annoyed while people consider worries that they plainly don't know about. You managed to hit the nail upon the top and also defined out the whole thing without having side-effects , people can take a signal. Will probably be back to get more. Thanks

Feel free to visit my site ... Air Jordan 2013

Anonymous said...

We're a group of volunteers and starting a new scheme in our community. Your web site provided us with valuable information to work on. You have done an impressive job and our whole community will be thankful to you.

Also visit my blog post ... Oakley Frogskins

Anonymous said...

Oh my goodness! Incredible article dude! Thank you so much, However
I am going through troubles with your RSS.
I don't understand why I am unable to subscribe to it. Is there anyone else having identical RSS problems? Anyone who knows the answer can you kindly respond? Thanks!!

my webpage; Abercrombie Pas Cher

Anonymous said...

Thank you, I have just been looking for information about this topic
for a long time and yours is the best I have came upon so far.
But, what about the conclusion? Are you positive about the source?



Feel free to surf to my web site ... Air Max Pas Cher

Anonymous said...

Quality articles is the key to invite the visitors to
pay a visit the web page, that's what this website is providing.

Feel free to visit my site ... www.explorethecapabilities.com

Anonymous said...

This is a very good tip particularly to those fresh to the blogosphere.

Simple but very accurate info… Many thanks for sharing
this one. A must read post!

my site :: Nike Air Max

Anonymous said...

Hello, I desire to subscribe for this website to get latest updates, therefore where
can i do it please help.

Feel free to surf to my blog ... Nike Air Max

Anonymous said...

I was wondering if you ever considered changing the layout of your blog?

Its very well written; I love what youve got to say. But maybe
you could a little more in the way of content so people could connect with
it better. Youve got an awful lot of text for only having
one or two images. Maybe you could space it out better?



Feel free to surf to my web-site; Nike Free

Anonymous said...

fantastic publish, very informative. I wonder why the other experts of this sector
do not understand this. You must continue your writing.
I'm confident, you've a huge readers' base already!

my web-site ... link

Anonymous said...

My developer is trying to convince me to move to .
net from PHP. I have always disliked the idea because of the
costs. But he's tryiong none the less. I've been using WordPress on a number
of websites for about a year and am concerned about switching to another platform.
I have heard fantastic things about blogengine.net. Is there
a way I can transfer all my wordpress content
into it? Any kind of help would be greatly appreciated!


Check out my web blog: Clicking Here

Anonymous said...

Great goods from you, man. I've have in mind your stuff previous to and you're simply extremely great.
I really like what you've received here, really like what you are saying and the way during which you assert it. You are making it entertaining and you still care for to stay it wise. I can't wait
to read much more from you. This is really a terrific website.



My web blog ... Visit Website

Anonymous said...

Great items from you, man. I've have in mind your stuff previous to and you are just too wonderful. I really like what you have acquired right here, certainly like what you are stating and the best way wherein you are saying it. You make it entertaining and you still care for to stay it wise. I can't wait to learn much more from you.

That is actually a tremendous site.

Stop by my homepage: next page

Anonymous said...

As the admin of this web page is working, no question very soon it
will be well-known, due to its quality contents.


Here is my web page - Read Full Article

Anonymous said...

This is a very good tip particularly to those new to the blogosphere.
Simple but very precise info… Many thanks for sharing this one.
A must read article!

My blog - http://pornharvest.com/index.php?m=2327784

Anonymous said...

http://www.mckague.org/NewOrleansSaints.html Spot on with this write-up, I really think this website requires a great deal extra interest. I’ll in all probability be returning to read by means of far more, thanks for the suggestions! [url=http://mckague.org/HoustonTexans.html]Johnathan Joseph Jersey[/url]
http://www.mckague.org/NewEnglandPatriots.html I do accept as true with all the concepts you’ve presented within your post. They’re very convincing and will undoubtedly operate. Nevertheless, the posts are really short for beginners. May well just you please extend them a bit from subsequent time? Thanks for the post. [url=http://www.mckague.org/PittsburghSteelers1.html]Rashard Mendenhall Jersey[/url] http://www.mckague.org/OaklandRaiders.html The only folks that would glimpse great making use of these fugly issues is going to be Ferrari pit crew within the pits. [url=http://mckague.org/HoustonTexans.html]Andre Johnson Jersey[/url]
http://mckague.org/BaltimoreRavens.html Sweet blog! I identified it while browsing on Yahoo News. Do you've any suggestions on the way to get listed in Yahoo News? I’ve been trying for any even though but I under no circumstances appear to obtain there! Many thanks ベルーナ [url=http://www.mckague.org/NewEnglandPatriots.html]Rob Gronkowski Jersey[/url]

Anonymous said...

Hmm it looks like your website ate my first
comment (it was extremely long) so I guess I'll just sum it up what I had written and say, I'm
thoroughly enjoying your blog. I too am an aspiring blog writer but I'm still new to the whole thing. Do you have any tips for beginner blog writers? I'd really appreciate it.



Here is my website - Michael Kors

Anonymous said...

Have you ever thought about writing an ebook or guest authoring on
other sites? I have a blog based on the same ideas
you discuss and would really like to have you share some
stories/information. I know my subscribers would value your work.
If you're even remotely interested, feel free to shoot me an email.

Also visit my web site; Sac A Main Louis Vuitton

Anonymous said...

Just want to say your article is as astounding. The clearness
in your post is just excellent and i could assume you're an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please keep up the enjoyable work.

My web-site :: Wholesale Jerseys (http://nysacpr.org)

Anonymous said...

Hi, Neat post. There's an issue together with your site in internet explorer, could test this? IE still is the marketplace chief and a good part of folks will pass over your wonderful writing due to this problem.

my web page; Low Nike Blazers

zoyi330 said...

Effectively, this short article was extremely dazzling, I prefer the look,Content House warming!!Iphone 4s case Good article , This article will probably be worth considering ,Talk your fact The subsequent continue to focus the attention to your own article