Lexicographic preferences describe preferences where an economic agent prefers any amount of one good (X) to any amount of another (Y). SpeciÖcally, if o§ered several bundles of goods, the agent will choose the bundle that o§ers the most X, no matter how much Y there is. Only when there is a tie between bundles with regard to the number of units of X will the agent start comparing the number of units of Y across bundles. Show that Lexicographic preferences are transitive

Lexicographic preferences describe preferences where an economic agent prefers any amount of one good (X) to any amount of another (Y). SpeciÖcally, if o§ered several bundles of goods, the agent will choose the bundle that o§ers the most X, no matter how much Y there is. Only when there is a tie between bundles with regard to the number of units of X will the agent start comparing the number of units of Y across bundles. Show that Lexicographic preferences are transitive

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.9P

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