By Erik Angner
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Additional resources for A Course In Behavioral Economics
So to choose the most preferred item is to choose the item with the highest utility. Now, to maximize utility is to choose the item with the highest utility. Thus, you choose rationally insofar as you maximize utility. Hence, to maximize utility is to choose rntionnlly. 8 Indifference curves and utility 2 3 Apples Rational Choice under Certainty '11 utility. ,atisfaction, contentment, happiness, or whatever; utility (like preference) still has nothing to do with subjectively experienced states of any kind.
A) Give an example of a relation that is complete but not transitive. (b) Give an example of a relation that is transitive but not complete. 35 lmtionality Explain (in words) why each of the two characters below is irrational according to the theory you have learned in this chapter. (a) In the drama Sophie's Choice, the title character finds herself in a Nazi concentration camp and must choose which one of her children is to be put to death. She is not indifferent and cannot form a weak preference either way.
See the text box on page 16 for a useful list of logical symbols. Either way, transitivity says that if you prefer coffee to tea, and tea to root beer, you must prefer coffee to root beer; that is, you cannot prefer coffee to tea and tea to root beer while failing to prefer coffee to root beer. A relation R is complete just in case the following condition holds: for any x and yin the universe, either x bears relation R toy, or y bears relation R to x (or both). If the universe consists of all people - past, present, and future - then "is at least as tall as" is a complete relation.
A Course In Behavioral Economics by Erik Angner