# 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 ...
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 ...
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### 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
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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. ...
927 views

1 vote
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### 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
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### 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/...
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### 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 ...
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### 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
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### 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 ...
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### 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
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### 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 ...
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### 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 ...
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### 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