{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


Rubinstein2005-page19 - ted What must the description...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
October 21, 2005 12:18 master Sheet number 17 Page number 1 LECTURE 1 Preferences Preferences Although we are on our way to constructing a model of rational choice, we begin the course with an “exercise”: formulating the no- tion of “preferences” independently of the concept of choice . We view preferences as the mental attitude of an individual (economic agent) toward alternatives.We seek to develop a “proper” formaliza- tion of this concept, which plays such a central role in economics. Imagine that you want to fully describe the preferences of an agent toward the elements in a given set X . For example, imagine that you want to describe your own attitude toward the universities you apply to before finding out to which of them you have been admit-
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ted. What must the description include? What conditions must the description ful±ll? We take the approach that a description of preferences should fully specify the attitude of the agent toward each pair of elements in X . For each pair of alternatives, it should provide an answer to the question of how the agent compares the two alternatives. We present two versions of this question. For each version we formu-late the consistency requirements necessary to make the responses “preferences” and examine the connection between the two formal-izations. The Questionnaire Q Let us think about the preferences on a set X as answers to a “long” questionnaire Q which consists of all quiz questions of the type:...
View Full Document

{[ snackBarMessage ]}