If Preferences Exhibit the Property of Transitivity, Then

question 399

Multiple Choice

If preferences exhibit the property of transitivity, then

• A)the preferences are irrational.
• B)individuals prefer more government involvement in private markets than do people whose preferences are not transitive.
• C)preferences change over time more quickly than when preferences are not transitive.
• D)preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow in Social Choice and Individual Values.

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Definitions:

Daniel Kahneman

A renowned psychologist and economist, known for his work on the psychology of judgment and decision-making, as well as behavioral economics.

Amos Tversky

A cognitive and mathematical psychologist known for his collaborative work with Daniel Kahneman on the cognitive biases affecting human judgment and decision-making.

Morale Problem

A situation in which there is widespread dissatisfaction, lack of enthusiasm, or disengagement among members of a group or organization.

Bounded Rationality

A concept suggesting that decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.