Theoretical Economics, Forthcoming
24 Pages Posted: 9 Sep 2015 Last revised: 14 Oct 2017
Date Written: Oct 5, 2017
We introduce a theory of ranking sets of accomplishments in the presence of objectively incomparable marginal contributions (apples and oranges). Our theory recommends benchmarking, a method under which an individual is deemed more accomplished than another if and only if she has achieved more benchmarks, or important accomplishments. We show that benchmark rules are characterized by four axioms: transitivity, monotonicity, incomparability of marginal gains, and incomparability of marginal losses. The latter two properties are local, and hence we endogenously derive a concept of a global, objective good, which we call a benchmark.
Keywords: Benchmarking, Axioms, Measurement, Apples and Oranges, Incompleteness, Closure Operator, Homomorphisms
JEL Classification: A10, C71, D63
Suggested Citation: Suggested Citation