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.

363 questions
Filter by
Sorted by
Tagged with
25 views

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 ...
1 vote
52 views

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 ...
104 views

Determine Whether A Preference Relation Satisfies The Continuity Axiom - from Exercise 1.1 in Game Theory: Analysis of Conflict by Roger Myerson

I am self-studying game theory using Game Theory: Analysis of Conflict by Roger Myerson. Here is an exercise from the textbook. I tried it myself, but I am not sure if it is correct. I would really ...
294 views

How to solve a general equilibrium problem with lexicographic preferences?

I have been unable to find a good example of this type of GE problem in our textbooks, and our professor has indicated that something like this may appear on our exam. So, here is a hypothetical ...
77 views

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
8 views

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. ...
927 views

1 vote
324 views

Archimedean but not mixture continuous

In the context of preferences on a set of lotteries on a finite set $X$, what is an example of a preference that is independent, Archimedean but not mixture continuous? I know the mixture continuous ...
211 views

Does Preference have a Hierarchy? A Silly Question

I have what is probably a very silly question, but I have gone down the rabbit hole and can’t get back out..... Is there is a hierarchy of preference, and within each level of choice do we reset the ...
1 vote
83 views

y is weakly preferred over x if and only if x+y ≤ 4 defines a preference relation on {0,1,2,3} why is this incomplete?

y is weakly preferred over x if and only if x+y ≤ 4 defines a preference relation on {0,1,2,3}. True or False?. I can see why it's not transitive but I was told it was incomplete if we take 2 and 3. ...
95 views

Transitivity of Preferences paper

I am going through some of my old grad school notes, and in my microeconomics notes on transitive preferences, the teacher made a note of a behavioral economics result where when presented with two ...
1 vote
44 views

Give bundles $x,y\in \mathbb R^n$, there must exist a budget $B\supset\{x,y\}$ and a demand $D(B)\in[x,y]$?

For a problem in revealed preference. Give bundles $x,y\in \mathbb R^n$, must there exist a budget $B\supset\{x,y\}$ and a demand $D(B)\in[x,y]$? Intuitively, this mean that we have two bundles, and ...
231 views

Lexicographic preference relation not continuous

I’m having trouble understanding why lexicographic preference relations aren’t continuous. I need inspiration on how this proof would work.
1 vote
149 views

Does strongly monotone preference imply local non-satiation?

How to prove this? I understand monotonicity implies local non-satiation but does strongly monotone also imply it? How to prove it like this - https://felixmunozgarcia.files.wordpress.com/2017/08/...
37 views

Properties of Consumer Preferences - Monotonicity

Was reviewing topics and I came across this question. I am confused because there is no reference to strict or weak monotonicity in this case. I first thought that monotonicity is violated b/c an ...
100 views

49 views

labor leisure model, quasilinear preferences

There is a quasilinear utility function $u= (1-t)wl - p(l)$, where $l$ is labor supply. I don't quite understand what happens, if the budget changes (due to $w$ or $t$) since it is quasilinear. Does ...
1 vote
42 views

Reference for monotonicity: $x\geq y\implies x\succsim y$ and $x>y\implies x\succ y$

I've seen this definition for monotonicity many times on different papers and on this site: $x\geq y\implies x\succsim y$ and $x>>y\implies x\succ y$. However, what I read on MWG's ...
65 views

McKelvey-Schofield Chaos Theorem Without Agenda Setter

The McKelvey-Schofield Chaos Theorem states that in a multidimensional preference space, it is almost always possible to reverse engineer the implementation of your desired policy by constructing an ...
166 views

Sufficient conditions for connectedness of indifference sets of a preference relation defined on a compact and convex set only

Let $\succsim$ a complete, reflexive and transitive binary relation defined on $X$, a non-degenerated (i.e not identical to a singleton) convex compact subset of $\mathbb{R}^n_{++}$ (the set of n-...
159 views

Order relations and preferences using logic

I want to understand order relations using their underlying implication mechanics and what this means for certain results, specifically looking at preference relations. Using the logical rules of ...
1 vote
78 views

Is it possible to get back the consumer’s utility function from their demand functions?

I am curious about if it’s possible to reverse the utility maximization process, i.e. given the consumer’s Marshallian demand functions, find their utility function. I was thinking of trying to find ...
129 views

Preference relations based on Varian

I understand that there is no universally agreed terminology for preference relations. However I need to pin down a definitive way to think about them (both for my exam, and my own sanity). Please can ...
79 views

Conflicting Definitions of Weak Monotnocity (preferences)

Strong Montonicity my sources seem to agree on Strong monotonicity, i state equivalent definitions below. But weak montonicity i keep finding what appear to be conflicting definitions. In the ...
82 views

Assigning dollar value to intangible costs and benefits

I am trying to develop a framework that a person can use to help them decide where to live. The idea is to assign a dollar value to various attributes (e.g. work opportunities, cost of living, climate,...
120 views

Risk aversion and utility transformation: are preferences still the same?

If you have two utility functions $u(\cdot), \; v(\cdot)$ such that $v(x) = f(u(x))$ for some monotonic transformation $f(\cdot)$, then $u(\cdot)$ and $v(\cdot)$ represent the same preference ...
103 views

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 ...
1 vote