What is Preference Economics
In economics and other social sciences, the term “preference” refers to the order in which an agent ranks options based on their relative usefulness, often with the goal of finding the “optimal choice.” Generally speaking, preferences are assessments that are concerned with considerations of value and are often related to practical reasoning. A person's preferences are not influenced by factors like as the costs of the commodities, their availability, or their own personal income; rather, they are decided solely by the individual's tastes, requirements, and other factors. Classical economics, on the other hand, relies on the assumption that individuals behave in their own best (rational) interest. Taking this scenario into consideration, logic would require that when an individual is presented with a choice, they will choose the alternative that optimizes their own self-interest. Preferences, on the other hand, are not necessarily transferable. This is due to the fact that actual people are not always rational, and also because preferences might form cycles under some circumstances, in which case there is no clearly defined best decision. The Efron dice are a good illustration of this.
How you will benefit
(I) Insights, and validations about the following topics:
Chapter 1: Preference (economics)
Chapter 2: Utility
Chapter 3: Indifference curve
Chapter 4: Arrow's impossibility theorem
Chapter 5: Social welfare function
Chapter 6: Consumer choice
Chapter 7: Budget constraint
Chapter 8: Marginal rate of substitution
Chapter 9: Loss function
Chapter 10: Expected utility hypothesis
Chapter 11: Utility maximization problem
Chapter 12: Ordinal utility
Chapter 13: Cardinal utility
Chapter 14: Revealed preference
Chapter 15: Sonnenschein-Mantel-Debreu theorem
Chapter 16: Quasilinear utility
Chapter 17: Utility-possibility frontier
Chapter 18: Von Neumann-Morgenstern utility theorem
Chapter 19: Preference
Chapter 20: Debreu's representation theorems
Chapter 21: Overtaking criterion
(II) Answering the public top questions about preference economics.
(III) Real world examples for the usage of preference economics in many fields.
Who this book is for
Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of preference economics.
