Abstract

This article contributes to the literature on the evaluation of sets of opportunities. The starting point is Lancaster's characteristics approach. However, instead of assuming the existence of a canonical utility function, a reference point or reference level is postulated from which an agent evaluates set expansions in appropriate directions. One of the major tools for this exercise is the notion of directed cones. Desirability of characteristics is restricted to the interior of these cones. Satiation and non-monotonic evaluation is considered as well. An axiomatic characterization for various cases is provided.