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.
Authors
- Johan E. Gustafsson (ORCID: https://orcid.org/0000-0002-9618-577X)
Institutions
- The University of Texas at Austin (US)
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
- 0.00