Suppose that we have n
objects α1, ..., αn,
and we want to define something like numerical values (at least
hyperreal ones, if we can’t have real ones) on the basis of comparisons
of value. Here is one interesting way to proceed. Consider the space of
formal sums m1α1 + ... + mnαn,
where the mi are natural
numbers, and suppose there is a total preorder ≤ (total transitive reflexive relation) on
this space satisfying the axioms:
x + z ≤ y + z
iff x ≤ y
mx ≤ my
iff x ≤ y for all
positive m.
We can think of m1α1 + ... + mnαn ≤ p1α1 + ... + pnαn
as saying that the “aggregative value” of having mi copies of
αi for all
i is less than or equal to the
“aggregative value” of having pi copies of
αi for all
i. The aggregative value of a
number of objects is the “sum value”, where we don’t take into account
things like the diversity or lack thereof or other “arrangement
values”.
Now extend ≤ to formal sums m1α1 + ... + mnαn
where the mi are allowed
to be positive or negative by stipulating that:
- m1α1 + ... + mnαn ≤ p1α1 + ... + pnαn
iff (k+m1)α1 + ... + (k+mn)αn ≤ (k+p1)α1 + ... + (k+pn)αn
for some natural k such that
k + mi
and k + pi
are non-negative for all i.
Axiom (1) implies that the choice of k is irrelevant. It is easy to see
that ≤ still satisfies both (1) and
(2). Moreover, ≤ is still total,
transitive and reflexive.
Next extend ≤ to formal sums r1α1 + ... + rnαn
where the ri are rational
numbers by stipulating that:
- r1α1 + ... + rnαn ≤ s1α1 + ... + snαn
iff ur1α1 + ... + urnαn ≤ us1α1 + ... + usnαn
for some positive integer u
such that uri and
usi is
an integer for all i.
Axiom (2) implies that the choice of u is irrelevant. Again, it is easy
to see that ≤ continues to satisfy (1)
and (2), and that it remains total, transitive and reflexive.
Thus, ≤ is a total vector space
preorder on an n-dimensional
vector space V over the
rationals with basis α1, ..., αn.
Let C be the positive cone
of ≤: C = {x ∈ V : 0 ≤ x}.
This is closed under addition and positive rational-valued scalar
multiplication. Let K be the
kernel of the preorder, i.e., {x ∈ V : 0 ≤ x ≤ 0} = C ∩ − C.
Now, let W be the n-dimensional vector space over the
reals with basis α1, ..., αn.
Let D be the smallest subset
of W containing C and closed under addition and
multiplication by positive real scalars: this is the set of real-linear
combinations of elements of C
with positive coefficients. It is easy to check that D ∩ V = C. Let
L = D ∩ − D. Then
L ∩ V = K.
Let E be a maximal subset
of W that contains D, is closed under addition and
multiplication by positive real scalars, and is such that E ∩ − E = L. This
exists by Zorn’s Lemma. I claim that for any v in W, either v or − v is in E. For suppose neither v nor − v is not in E. Then let E′ = {e + tv : t > 0, e ∈ E}.
This contains C, and is closed
under addition and multiplication by positive reals. If we can show that
E′ ∩ − E′ = L,
then since E is a proper
subset of E′, we will
contradict the maximality of E. Suppose z ∈ E′ ∩ − E′ but
not z ∈ L. Since
E ∩ − E = L, we
must have either z or − z in E′ ∖ E. Without loss of
generality suppose z ∈ E′ ∖ E. Then
z = e + tv
for e ∈ E and t > 0. Thus, e + tv ∈ − E.
Hence tv ∈ (−e) + (−E) ⊆ − E,
since e ∈ E and E is closed under addition. Since
E is closed under positive
scalar multiplication, we have v ∈ − E, which contradicts
our assumption that − v is
not in E.
Define ≤* on W by letting v≤*w iff w − v ∈ E. Note
that ≤* agrees with ≤ on V. If v ≤ w are in V, then w − v ∈ C ⊆ E
and so v≤*w.
Conversely, if v≤*w, then w − v ∈ E. Now,
since w − v is in
V, and ≤ is total, if we don’t have v ≤ w, we must have w ≤ v and hence v − w ∈ C, so
w − v ∈ − C.
Since E ∩ − E = L, we
have w − v ∈ L. But
v, w ∈ V, so
w − v ∈ L ∩ V = K.
Thus, v ≤ w, a
contradiction.
It’s also easy to see that ≤* is total, transitive and
reflexive. It is therefore representable by lexicographically-ordered
vector-valued utilities by the work of Hausner in the middle of the last
century. And vector-valued utilities are representable by hyperreals
(just represent (x1,...,xn)
with x1 + x2ϵ + ... + xnϵn − 1
for a positive infinitesimal ϵ).
Remark 1: Here is a plausible condition on the
extension ≤* that we can
enforce if we like: if Q and
U are neighborhoods of v and w respectively, and for all q ∈ Q ∩ V and all
u ∈ U ∩ V we
have q ≤ v, then
v≤*w. For
this condition will hold provided we can show that if Q is a neighborhood of v such that Q ∩ V ⊆ C, then
v ∈ E. Note that any
positive-real-linear combination of points v satisfying this neighborhood
condition also satisfies this condition, and any sum of a point v satisfying this condition and a
point in D will also satisfy
it. Thus we can add to D all
such points v, and carry on
with the rest of the proof.
Remark 2: If we start off with ≤ being a partial preorder, ≤* still becomes a total order.
Then instead of proving it agrees with the partial preordering
on V (or the initial
ordering), we use the basically the same proof to show that it extends
both the non-strict and strict orders: (a) if w ≤ v, then w≤*v and if
w < v, then w<*v.
Question 1: Can we make sure that the values are
real numbers?
Response: No. Suppose you are comparing a sheep and
a goat, and suppose that they are valued positively and equally—the one
exception is ties are broken in favor of the sheep. Thus, n+1 copies of the goat are better
than n copies of the sheep and
both are better than nothing, but n copies of the sheep are better
than n copies of the goat. To
represent this with hyperreals we need to take the value of the sheep to
be ϵ + g where g > 0 is the value of the goat,
and where ϵ/g is a
positive infinitesimal.
Question 2: Is the representation is “practically
unique”, i.e., does it generate the same decisions in probabilistic
situations, or at least ones with real-valued probabilities?
Response: No. Supose you have a sheep and a goat.
Now consider two hypotheses: on the first, the sheep is worth − ϵ + π goats, and on the
second, the sheep is worth ϵ + π goats, for a positive
infinitesimal ϵ. Both
hypotheses generate the same aggregative value comparisons between
aggregates consisting of n1 copies of the goat and
n2 copies of the
sheep for natural numbers n1 and n2, since π is irrational. But the two
hypotheses generate opposite probabilistic decisions if we are choosing
between a 1/π chance of the
sheep and certainty of the goat.