Answered: The Foundations of Behavioral Economic…

The Foundations of Behavioral Economic Analysis Consider the following property of choice correspondence : Show that maximization of complete and transitive preference satisfies β-axiom.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.10P

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The Foundations of Behavioral Economic Analysis

Consider the following property of choice correspondence

Show that maximization of complete and transitive preference satisfies β-axiom.

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B-axiom: SC T and c(T) nc(S) # Ø imply c(S) C c(T).

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