Unformatted text preview: y = x l . The above applied to n = max { k , l } yields x k % x l iFF U ( x k ) ≥ U ( x l ) . Lexicographic Preferences Lexicographic preFerences are the outcome oF applying the Following procedure For determining the ranking oF any two elements in a set X . The individual has in mind a sequence oF criteria that could be used to compare pairs oF elements in X . The criteria are applied in a fxed order until a criterion is reached that succeeds in distinguishing between the two elements, in that it determines the preFerred alternative. ±ormally, let ( % k ) k = 1, ... , K be a Ktuple oF orderings over the set X . The lexicographic ordering induced by those orderings is defned by x % L y iF (1) there is k ∗ such that For all k < k ∗ we have x ∼ k y and x Â k ∗ y or (2) x ∼ k y For all k . VeriFy that % L is a preFerence relation....
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 Fall '10
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 Utility, xk, xn ≺ xk, xk ≺ xn

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