Ch03Preferences(微观-范里安-(上海交通大学,赵旭 ).pptVIP

Chapter Three Preferences Rationality in Economics Behavioral Postulate:A decisionmaker always chooses its most preferred alternative from its set of available alternatives. So to model choice we must model decisionmakers’ preferences. Preference Relations Comparing two different consumption bundles, x and y: strict preference: x is more preferred than is y. weak preference: x is as at least as preferred as is y. indifference: x is exactly as preferred as is y. Preference Relations Strict preference, weak preference and indifference are all preference relations. Particularly, they are ordi