Preference for Verifiability

Fuente: arXiv
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Autor principal: Rommeswinkel, Hendrik
Formato: Preprint
Publicado: 2025
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author Rommeswinkel, Hendrik
author_facet Rommeswinkel, Hendrik
contents Decision makers sometimes cannot observe the consequences of their actions ex-post. This paper axiomatically characterizes a decision model in which the decision maker cares about verifying that a good consequence has been achieved. Preferences over acts identify a set of events the decision maker expects to verify. Decision makers choose acts maximizing, in expectation over verifiable events, the worst-case utility consistent with each event. A dual model captures decision makers who instead seek to obscure poor outcomes from verification. As an application, firms choosing carbon-reduction technologies may prefer less efficient but more verifiable technologies to prove emission reductions to stakeholders.
format Preprint
id arxiv_https___arxiv_org_abs_2508_19585
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Preference for Verifiability
Rommeswinkel, Hendrik
Theoretical Economics
Decision makers sometimes cannot observe the consequences of their actions ex-post. This paper axiomatically characterizes a decision model in which the decision maker cares about verifying that a good consequence has been achieved. Preferences over acts identify a set of events the decision maker expects to verify. Decision makers choose acts maximizing, in expectation over verifiable events, the worst-case utility consistent with each event. A dual model captures decision makers who instead seek to obscure poor outcomes from verification. As an application, firms choosing carbon-reduction technologies may prefer less efficient but more verifiable technologies to prove emission reductions to stakeholders.
title Preference for Verifiability
topic Theoretical Economics
url https://arxiv.org/abs/2508.19585