Blog Large – Classic (Left)

For those who think that the only way to determine a person’scomparative beliefs is to look at her preferences, the lack ofuniqueness in Jeffrey’s theory is a big problem. Indeed, thismay be one of the main reasons why economists have largely ignoredJeffrey’s theory. Economists have traditionally be...Read More

We then proceed todiscuss how choice functions and their properties can be derived frompreferences. Finally, we view the relationship from the other end, andintroduce some approaches to inferring preferences from observedchoices. Consider again the choice among alternative architectural designs fora...Read More

Gérard Debreu, influenced by the ideas of the Bourbaki group, championed the axiomatization of consumer theory in the 1950s, and the tools he borrowed from the mathematical field of binary relations have become mainstream since then. Even though the economics of choice can be examined either at the ...Read More

Steedman and Krause (1986) discussdifferent types of formation rules, which map a bundle (≽1, ≽2, …, ≽n)onto a single preference relation. The first formation rule describes avery cautious character, who considers an alternative at least as goodas another only if she considers it at least as good in...Read More

However, alternative frameworks, where this is not thecase, have been developed (e.g. Loomes and Sugden 1982). ≻Sdoes not necessarily satisfy transitivity of strict preference,transitivity of indifference, IP- or PI-transitivity. Relata of combinative preferences typically are not specified enoughto...Read More

Each sub-event could be similarlypartitioned according to the outcome of the second toss of the samecoin, and so on, ad infinitum. To introduce the paradox, consider three individuals,i1, i2, andi3, who are going on a trip together. Theyhave three countries to choose between, namely Argentina (A),Bo...Read More

The staff accountant job description predicts future finances based on current revenue. It looks at financial items like the cost of goods sold (COGS) and accounts receivable as a percentage of your total sales. This information about past sales data helps you predict future financial performance. E...Read More

That is because the bad debt expense was recognized when the company recorded the estimated uncollectable amount in the period of respective sales recognition. So, bad debt expenses are only recorded when the company posts the estimates of uncollectable balances due from customers, but not when bad ...Read More