Daily Assignment Sept 17 - Making rational choices I preference indifference and transitivity Readings Notes on Preferences Preference Ordering and

Daily Assignment Sept 17 - Making rational choices I...

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Making rational choices I: preference, indifference, and transitivity September 17, 2012 Readings Notes on Preferences, Preference Ordering, and Transitivity- Kleiman (Collab) “On Not Being A Money Pump” (Collab) Key Concepts Preference wanting to do one option over another Choice decision made between options Transitivity if you prefer A to B and B to C, you should also prefer A to C Alternatives other possible choices in terms of preferences “Circular” preference ordering A>B>C; doesn’t reflect preferences “The Money Pump” anyone with circular preferences A>B>C>A Guide Questions 1.Why is transitivity of preference an essential part of rationality?
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Unformatted text preview: It helps to determine which option will be the ultimate choice 2. What are some policy examples of irrational preference ordering? Choices that show they can’t result from any coherent set of prefernce Written Questions Assume that someone has choices A, B, C, D, E, F. For each of the following lists of preferences that the chooser might have, say whether it is or is not a preference ordering in the technical sense, and if not say why it isn't. A P B B P C C P D D P E E P F A P B B P C C I D D P E E P F A P B B P C D P E E P F A P B B P C C P D D P E E P F F P A...
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