In this note we are concerned with the proof of a theorem due to Kreps (1979) which goes thus: A reflexive, complete and transitive preference relation over a collection of intertemporal opportunities such that the available set of second period opportunity sets associated with each first period alternative is closed under unions can be represented as a sum of a finite number of indirect utility functions, if and only if two reasonably harmless properties are satisfied. We provide a tidy presentation of the original proof.
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References
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KrepsD.M. (1979). A representation theorem for preference for flexibility. Econometrica, 47(3), 565–577.
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KrepsD.M. (1990). A course in microeconomic theory. Princeton, NJ: Princeton University Press.
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ModicaS. (2002). A note on preference for flexibility. Decisions in economics and finance, 25(1), 47–63.
