Representations of preference orderings (Q1842559)

Students of mathematical economics will, at one point or another, run across the classical theorems of Eilenberg and Debreu on the existence of continuous real-valued order preserving mappings (order homomorphisms). The present volume tries to bring together a number of the most important representation theorems which can be found both in the mathematics and the mathematical economics literature. The authors start out with a brief description of the general problem: Given some kind of ordering \(\succeq\) on a set \(S\), find a real-valued mapping \(u\) on \(S\) such that for any elements \(x\), \(y\) of \(S\), \(x\succeq y\) iff \(u(x)\geq u(y)\). If also \(S\) has a topology (respectively, differential structure), find conditions that ensure the continuity (respectively, differentiability) of the mapping \(u\). The book starts with a discussion of the basic notions of the theory of ordered sets and of order homomorphisms between such sets. Finite and countable ordered sets as well as uncountable sets are considered. Furthermore, connections between order and topology are examined. The following chapter discusses the construction of order homomorphisms on closed convex subsets of \(n\)-dimensional Euclidean space, allowing the use of the Euclidean distance function. Chapter 3 proves the fundamental theorems by Eilenberg and Debreu mentioned above, applying \textit{G. Deubreu's} open gap lemma, dating back to 1954 (published in `Decision processes', ed. by R. M. Thrall, C. H. Coombs and R. L. Davis (1954; Zbl 0057.356)). Chapter 4 discusses, among other items, Peleg's representation theorem for strict partial orders, Jaffray's lemma which generalizes Debreu's open gap approach, order homomorphisms on ordered topology groups and representation theorems on topological vector spaces which are being used in general equilibrium theory. The following chapter proves the existence of continuous order isomorphisms following the Urysohn- Nachbin approach. Nachbin's separation theorem provides new proofs of Eilenberg's and Debreu's theorems. Chapter 6 deals with interval orders on a topological space and their representation by a pair of real-valued continuous functions. Chapter 7 looks at differentiable manifolds and the existence of differentiable order isomorphisms. The final chapter considers the construction of jointly continuous utility functions and discusses various topologies such as the Kannai topology, the Hausdorff topology and the topology of closed convergence. The discussion here relates in an interesting way to the recent debate on the choice of the proper topology in connection with the existence of continuous aggregation rules. The monograph provides the mathematically oriented (micro-)economist with a deep insight into the recent developments concerning the representation of preference orderings.