# Questions tagged [choice-theory]

a conglomerate of models and results concerning the aggregation of individual choices into collective choices

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### Understanding the Choice Rule in MWG

I am reading the Microeconomics Theory book by MWG, and I am having a tough time interpreting what things mean to a real life example, so any help would be appreciated. For example, it gave this. ...
172 views

### Can the Certainty Equivalent be negative?

I am questioning if the CE of a lottery can be negative? For me it doesn't make much sense by definition. I encountered this problem on the following exercise: Imagine a case where we have a lottery(...
55 views

### Utility representation of single peaked preferences

Is it true that a single-peaked preference (with the peak at some finite point) over the set of real numbers, always has a utility representation ?? If yes, can you please hint towards the proof or ...
44 views

### Binary relation on the set $X = \{v, w, x, y , z\}$ that is asymmetric and transitive but not negatively transitive

So I am trying to find a binary relation on the set $X = \{v, w, x, y, z\}$ that is asymmetric and transitive but not negatively transitive, and is quite tricky. Will $R = (v, w)$ be asymmetric and ...
23 views

### Prove that Choice Coherence Implies IIA

Prove that Choice Coherence implies Independence of Irrelevant Alternatives (IIA). From the definition of choice coherence, we have this: A choice function c satisfies choice coherence if, for every ...
61 views

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### Continuous Preference Relation Imply Continuous Utility Fn Existence

I am reading MWG's explanation in Chapter 3 when showing continuous preference relation implies the existence of continuous utility function. First, the authors show $u(.)$ is continuous by using the ...
4k views

### (Preference Relation/Set) Continuous $\succsim$ imply closedness of upper and lower contour sets

[ADDED/MODIFIED] : I have put my proof where the commodity space is simply $\mathbb{R_+}$(e.g. nonnegative reals) for simplicity below. Please share your 2 cent. I have put words to aid my own ...
1k views

### Are terrorists rational?

Terrorism in general, and suicidal terrorism in particular, is popularly seen as “irrational,” but many economists and political scientists argue otherwise. This quote is from Terrorism: The ...
2k views

### intertemporal utility function usage : calculating consumption

I have encountered this a lot in my exams and can not seem to understand how to use these functions here is an easy exemple : A consumer who will only live 2 periods receives 1000€ in the first ...
332 views

### The 'Economic Man' (Reference Request)

We are writing a paper about the 'economic man.' By this, we mean that the choices he makes epitomize a rational economic thinker. However, we also acknowledge the fact that there are other, non-...