- The decision maker has an ideal point in mind and chooses the alternative closest to it.
I am not sure if I am right, but in order to rationalize it, we first have to construct a choice function. So, in this question we can say that U(x)= min d(x, I) where I is the ideal point.
Now, we would have to see if it satisfies the conditions to be a preference relation (completeness, transitivity) and then we check if it can be rationalized (if we always choose the same alternative regardless of the size of the set).
Are the steps that we have to follow the ones mentioned above? How can we answer the question above?