Question

In: Economics

You are considering 3 di§erent destinations for vacation: New York City, Las Vegas, and Miami. (a)...

You are considering 3 di§erent destinations for vacation: New York City, Las Vegas, and Miami.

(a) You are asked to make pairwise comparisons between these destinations in August, and you give the following response: Miami.New York City, New York CityLas Vegas, and MiamiLas Vegas. Are your preferences transitive? Why or why not?

(b) You are asked again to make pairwise comparisons between these destinations in March, and you give the following response: Miami.New York City, New York CityLas Vegas, and Las VegasMiami. Are your preferences transitive? Why or why not?

Solutions

Expert Solution

A) Transitive preference refers to ,when agent prefer x over y ,y over z then it must prefer x over z.

So in this case , maimi is preferred over new york, new york is preferred over las vegas ,and maimi is preferred over las vegas.

So preference are Transitive.

B)Now because he prefers maimi over new york city but doesn't prefer maimi over las Vegas.

But on other hand he prefers new York city over las Vegas.

So it is not Transitive preference.

Rahul Sunny answered 2 years ago
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