# 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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### Conditions to use the Lagrangian method

I have seen that the prices and $\text{MU}_{i}$ are assumed to be positive (or, the preferences monotonic). This is always mentioned when a utility maximization problem is being solved with the ...
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### Weak preferences and negative transitivity

Let $\succ$ be a binary relationship on the set $X$ such that, given any $x, y, z\in X$, if $x\succ y$: (Asymmetry): $\neg(y\succ x)$, (Negative transitivity): $(x\succ z) \vee (z\succ y)$. ...
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### Non well behaved preference

I have to discuss a consumer making a choice between 2 bundles, and the consumer has a non- well-behaved preference. What real example can I use to represent a non-well behaved preference?
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### A question about the property of quasi-linear preference

In case of quasi-linear preference, why would one unit more of the numeraire good (good 1) give the same additional utility as spending an additional amount of wealth equal to the cost of one unit of ...
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### Does non-monotonicity imply non-satiation always? Why or why not?

I understand that monotonic preferences imply non-satiation. But I am not sure 100% if non-monotonic functions always have satiation. An intuitive and mathematical explanation would be very helpful.
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### Framing Effect Risk-Aversion Risk-Pursuit

I am an economics' graduate seeking to study Law and I want to illustrate the importance of legal certainty. Penalties, Costs are negativelly framed. I am trying to word. 200 dollars with 50% ...
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