Book contents
- Frontmatter
- Contents
- Figures
- Preface
- 1 Preferences, Comparative Evaluations, and Reasons
- Part I Preferences in Positive Economics
- 2 Preference Axioms and Their Implications
- 3 Revealed-Preference Theory
- 4 Preferences, Decision Theory, and Consequentialism
- 5 Game Theory and Consequentialism
- 6 Constraints and Counterpreferential Choice
- Part II Preferences, Welfare, and Normative Economics
- Part III Psychology, Rational Evaluation, and Preference Formation
- References
- Index
4 - Preferences, Decision Theory, and Consequentialism
from Part I - Preferences in Positive Economics
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Figures
- Preface
- 1 Preferences, Comparative Evaluations, and Reasons
- Part I Preferences in Positive Economics
- 2 Preference Axioms and Their Implications
- 3 Revealed-Preference Theory
- 4 Preferences, Decision Theory, and Consequentialism
- 5 Game Theory and Consequentialism
- 6 Constraints and Counterpreferential Choice
- Part II Preferences, Welfare, and Normative Economics
- Part III Psychology, Rational Evaluation, and Preference Formation
- References
- Index
Summary
The last two chapters argued that economists should reject Sen’s two definitions of preferences. Preferences cannot be defined by expected advantage or by choice. What then are preferences? What satisfies the axioms of ordinal utility and combines with beliefs to determine choices?
Total Subjective Comparative Evaluations
Given the axioms of ordinal utility theory, preferences entail a complete and transitive ranking that determines choices when combined with beliefs and constraints. Because this ranking determines choices, it must be a total ranking, incorporating every factor agents take to influence their choices. As economists understand preferences, nothing competes with preferences in determining choices. Once beliefs and constraints are given, preferences are determinative.
- Type
- Chapter
- Information
- Preference, Value, Choice, and Welfare , pp. 34 - 48Publisher: Cambridge University PressPrint publication year: 2011