Rubinstein2005-page28 - tions, for example, the relation...

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 26 Page number 10 Problem Set 1 Problem 1. ( Easy ) Let % be a preference relation on a set X. DeFne I ( x ) to be the set of all y X for which y x . Show that the set (of sets!) { I ( x ) | x X } is a partition of X , i.e., ±or all x and y , either I ( x ) = I ( y ) or I ( x ) I ( y ) =∅ . ±or every x X , there is y X such that x I ( y ) . Problem 2. ( Standard ) Kreps (1990) introduces another formal deFnition for preferences. His prim- itive is a binary relation P interpreted as “strictly preferred.” He requires P to satisfy: Asymmetry : ±or no x and y do we have both xPy and yPx . Negative-Transitivity : ±or all x , y , and z X ,if xPy , then for any z either xPz or zPy (or both). Explain the sense in which Kreps’ formalization is equivalent to the tra- ditional deFnition. Problem 3. ( Standard ) In economic theory we are often interested in other types of binary rela-
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: tions, for example, the relation xSy : x and y are almost the same. Suggest properties that would correspond to your intuition about such a concept. Problem 4. ( DifFcult. Based on Kannai and Peleg 1984. ) Let Z be a Fnite set and let X be the set of all nonempty subsets of Z . Let % be a preference relation on X (not Z ). Consider the following two properties of preference relations on X : a. If A % B and C is a set disjoint to both A and B , then A C % B C , and if A B and C is a set disjoint to both A and B , then A C B C . b. If x Z and { x } { y } for all y A , then A { x } A , and if x Z and { y } { x } for all y A , then A A { x } ....
View Full Document

Ask a homework question - tutors are online