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On the sufficiency of transitive preferences

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  • Theodore Turocy

    (Department of Economics, Texas A and M University)

Abstract

The assumption that preferences are transitive, or, roughly equivalently, that choice behavior satisfies the Weak Axiom of Revealed Preference, is at the core of much classical normative decision theory. This paper asks to what degree this restricts the possible outcomes of choice behavior: are there objectives that could not be attained by an agent adhering to WARP that could be attained by choices that would be said to be "intransitive"? It is argued that the answer to this question is "no" in one setting of choice under random budget sets any outcome obtained by intransitive choice methods can also be obtained by transitive ones.

Suggested Citation

  • Theodore Turocy, 2007. "On the sufficiency of transitive preferences," Economics Bulletin, AccessEcon, vol. 4(22), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-07d00006
    as

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    References listed on IDEAS

    as
    1. Mandler, Michael, 2005. "Incomplete preferences and rational intransitivity of choice," Games and Economic Behavior, Elsevier, vol. 50(2), pages 255-277, February.
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    4. Fishburn, Peter C, 1991. "Nontransitive Preferences in Decision Theory," Journal of Risk and Uncertainty, Springer, vol. 4(2), pages 113-134, April.
    5. Epstein, Larry G, 1987. "The Unimportance of the Intransitivity of Separable Preferences," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(2), pages 315-322, June.
    6. Edward W. Piotrowski & Marcin Makowski, "undated". "Cat's Dilemma," Departmental Working Papers 20, University of Bialtystok, Department of Theoretical Physics.
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