# Questions tagged [preferences]

Binary relations that reflect which states of the world an agent considers to be most desirable. Preferences are a fundamental ingredient in the axiomatic study of consumer choice decision theory.

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### In revealed preference (RP), is any two points $x,y$ related by the indirect revealed preference relation?

Let $X$ be the closed compact convex set of alternative and $B$ be a closed compact convex subset of $X$. $C$ is defined on all closed compact convex set $B\subseteq X$. $X$ is ordered by a strictly ...
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### Why is monotonic preference and monotonic utility function non-decreasing?

Obviously a monotonic function can be either nondecreasing or nonincreasing: However, in Economics, a quick google search gives: I am interested in the history or the motivation behind the econ ...
1 vote
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### What was the study that shows peoples' tax preferences shift when they get more information about their income?

I am trying to find a study I read a few years ago, but I forgot the names of the authors and the title of the study. I have already tried to search for the study on Google Scholar without much luck. ...
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### Can strict preference be represented by Utility function if not complete?

The definition states that a Utility function represents the preference relation because the relation on R satisfies transitivity and completeness. Yet, strict preferences (and indifference ...
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### Can a preference relation not satisfy monotonicity and still be represented by an Utility function?

The book I am working with (Microeconomics Theory by A. Rubinstein) states that: "In the case that preferences are represented by a utility function, preferences satisfying monotonicity (or ...
1 vote
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### Can the following statement be rationalized if it yields a choice function?

A person choose an alternative to maximize another person's suffering. I thought we could define a sort of relation where the person suffers more from x than y. And if we can always do this, we can ...
1 vote
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### Can the following behavior be rationalized if it yields a choice function?

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, ...
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### Challenging question in microeconomics - local nonsatiation

I'm studying advanced micro from the Mas-Colell book (exercise 16.C.1) I was wondering if anyone can help me to solve the following exercise. I have no idea how to deal with it Show that if a ...
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### Strict monotonicity and strict convexity - prefences

I've just encountered the following exercise from GEOFFREY A. JEHLE micro's book Strict monotonicity comes from the fact that any increase in $x_1$ or $x_2$ increases utility, and strict convexity ...
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### Are the indifference curves for bads concave?

While I was studying microeconomics, a question arose: I know what the indifference curve for one “good” good and one “bad” good looks like. But if both goods are bad, is the indifference curve ...
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### Example of consumer preferences that switches from being concave to being convex

Question Is there an example of consumer preferences over consumption bundles $(x,y)\in \Bbb R^2$ that would be concave when $x$ is abundant relative to $y$ and convex otherwise? Are there known ...
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### Decomposition of preferences into set of CES functions

CES function as a tool Hello everyone, I have this idea: CES function basically tells us what is the elasticity of substitution between two (and more) goods, therefore giving us the exact complement/...
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### State dependent preferences vs state independent preferences in utility theory

I am working on changes in preferences and found papers on state-independent preference. What is the difference between state-dependent and state-independent preferences and utility functions? What ...
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### Which Choice Rule follows Always Chosen axiom and No Binary Cycle axiom?

Source: taken from ISI PhD entrance exam questions.
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### Does consumer demand in the secondhand market actually affect the firsthand market for high-cost goods

In the 21st Century, there is an increasing consumer awareness of the externalities of manufacturing and along with it a stronger consumer preference to buying used goods rather than new. My question ...
1 vote
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### How to check if a utility function represents locally non-satiated preferences?

I understand the distant definition of LNS but I don't get how to actually apply it to given utility functions like u=x1/x2 or u=x1-x2 or of any form? Is there structured math-y way to check if they ...
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### How to prove that any preference relation on (countable) X has a utility representation with a range (0,1)?

Theorem: If $X$ is countable, then any preference on $X$ has a utility representation with a range $(0,1)$. The stated proof in Rubinstein's lecture notes: Proof: Let $\{x_n\}$ be an enumeration of ...
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### Can "thick preferences" be represented by a utility function?

From microeconomics, $u$ is strictly quasi-concave if for all $x\ne y\in\mathbb{R}^2_+$ and $t \in (0,1)$, if $u(x)\ge u(y)$, then $u(tx + (1-t)y)>u(y)$. You may also check the figure below. Here ...