This paper introduces the concept of ordient for binary relations (preferences), a relative of the concept of gradient for functions (utilities). The main motivation for this study is to replace the ordering at the center stage of economic analysis, rather than its representation, if it exists. Ordients have a natural economic interpretation as marginal rates of substitution. Some examples of ordientable binary relations include the lexicographic order, binary relations resulting from the sequential applications of multiple rationales or binary relations with differentiable representations. We characterize the constrained maxima of binary relations through ordients and provide an implicit function theorem and an envelope theorem.
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Publisher Info
Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number
09/6.
Length: Date of creation: Feb 2009 Date of revision:
May 2009 Handle: RePEc:lec:leecon:09/6
Contact details of provider: Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK Phone: +44 (0)116 252 2887 Fax: +44 (0)116 252 2908 Email: Web page: http://www.le.ac.uk/economics/
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