A characterization of prudent choices

摘要

We define and axiomatize prudent choices for two criteria. Given two criteria, the alternatives chosen by the prudent choice procedure are the ones maximizing some composition of the criteria. This composition is such that (1) it contains the first criterion and a part of the second one, and (2) the new binary relation is not cyclic and cannot be enlarged with preferences of the second criterion without becoming cyclic. We also make the link between prudent choices, classical rational choices, sequentially rational choices (Manzini and Mariotti in Am Econ Rev 97(5):1824–1839, 2007a) and lexicographic binary choice rational choices (Tadenuma in J Econ Theory 104(2):462–472, 2002).