A behavioural money-pump argument for completeness

Abstract Completeness says that, for every pair of prospects, at least one of the prospects is at least as preferred as the other. I present a new money-pump argument that Completeness is a requirement of rationality. In comparison with earlier money-pump arguments for Completeness, this argument relies on a unidimensional form of stochastic dominance and the behavioural assumption that agents pick in a probabilistic manner when no option is optimal. Moreover, unlike some of the previous arguments, the new argument is based on a forcing money pump, that is, an exploitation scheme where the agent is rationally required at each step to go along with the scheme.

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Publication Details

Journal
Theory and Decision
Published
2025-05-24
DOI
https://doi.org/10.1007/s11238-025-10025-3
Primary Topic
Economic theories and models
Type
article
Field-Weighted Citation Impact
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article

A behavioural money-pump argument for completeness

Johan E. Gustafsson
Theory and Decision
Economic theories and models
article

A behavioural money-pump argument for completeness

Johan E. Gustafsson
article en

Abstract

Abstract Completeness says that, for every pair of prospects, at least one of the prospects is at least as preferred as the other. I present a new money-pump argument that Completeness is a requirement of rationality. In comparison with earlier money-pump arguments for Completeness, this argument relies on a unidimensional form of stochastic dominance and the behavioural assumption that agents pick in a probabilistic manner when no option is optimal. Moreover, unlike some of the previous arguments, the new argument is based on a forcing money pump, that is, an exploitation scheme where the agent is rationally required at each step to go along with the scheme.

Theory and Decision
The University of Texas at Austin (US)
Openalex Percentile: Top 84%
Economic theories and models
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