【正文】
ered relationship among alternative choices given by an economic agent. ? In most economic literature, consumer preference is treated as the ultimate exogenous element. Preference Relations ?Comparing two different consumption bundles, x and y: –strict preference: x is more preferred than is y. –weak preference: x is as at least as preferred as is y. –Indifference: x is exactly as preferred as is y. Notations ? denotes strict preference。 ? ~ denotes indifference。 p ~ f Preference Relations ?x y and y x imply x ~ y. ?x y and (not y x) imply x y. ~ f ~ f ~ f ~ f p Assumptions about Preference Relations ?Completeness: For any two bundles x and y it is always possible to make the statement that either x y or y x. ~ f ~ f Assumptions about Preference Relations ?Reflexivity: Any bundle x is always at least as preferred as itself。 . x y and y z x z. ~ f ~ f ~ f Indifference Curves 無差異曲線 (或 ,無差異集 ) ?Take a reference bundle x’. The set of all bundles equally preferred to x’ is the indifference curve containing x’。 Perfect Substitutes ?If a consumer always regards units of modities 1 and 2 as equivalent, then the modities are perfect substitutes and only the sum of the two modities in bundles determines their preference rankorder. Extreme Cases of Indifference Curves。 Perfect Complements ?If a consumer always consumes modities 1 and 2 in fixed proportion (. onetoone), then the modities are perfect plements and only the number of pairs of units of the two modities determines the preference rankorder of bundles. Extreme Cases of Indifference Curves。 . water or cheese. ?A modity is discrete if it es in unit lumps of 1, 2, 3, … and so on。 dx1 so, at x’, MRS is the rate at which the consumer is only just willing to exchange modity 2 for a small amount of modity 1. x’ MRS Ind. Curve Propert