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2. T he set of alternatives is Z-\a,b,c,d,e,f,gj. It has been observed that, when the available alternatives were a, e and f Bill chose a. We express this by saying that the observation was ( {a, e, Л.a) . The following is a list of observations concerning Bill: (a) Assuming that Bills preferences did not change during the observation period, is Bills behavior rationalizable by a complete and transitive preference relation? Explain your answer. (b) Suppose that Bill is not indifferent between any two alternatives. If he had been faced with a choice from the set fa,b,e. f?, what would he have chosen? [Warning: tricky question!]

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Answer #1

(a) to check for completeness we need to observe whether the observations are establishing relationship between each and every element or not.

transitivity can be understood through an example: when a is preferred over b, and b is preferred over c then a should be preferred over c. In the case of preference relation it can also be seen as is a is chosen over b then b can't be chosen over a in other set of observation.

9 tao tO bttuseve o lomansi discu badTo check dou.耘.audi Hvi ty ver d) c e nle(b) for this, we have to observe previous observations

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