高级微观经济学PreferenceandChoice幻灯片.pptVIP

Advanced Economics(lecture 5: consumption theory I) Ye Jianliang Preference and Choice Content: Preference and rationality The rule of choice Budget Demand function WA and demanded law 1.Preference An (acceptable) alternatives set (or a consumption set ) A (weak) preference relation“ ”: a binary relationship on X, for any , means” x is at least as good as y”. A strict preference “ ”: An indifference relation “ ”: 1.Preference Definition: preference on X is rational if: It’s complete: It’s reflexive: It’s transitive: 1.Preference Propersition1: if is rat