Sentence examples for rational preference from inspiring English sources
A very common assumption is that a rational preference ordering must be transitive (i.e., if A is preferred to B, and B is preferred to C, then A must be preferred to C. See the entry on preferences (Hansson and Grüne-Yanoff 2009) for an extended discussion of the rationale behind this assumption).
"But if people accustom their taste so that they enjoy hamburgers," Mr. Murphy said, "then trading health for taste is a rational preference".
Politicians' rational preference of short-term political concerns over macroeconomic calculation in economic policy making can also affect general monetary and fiscal policy.
The theorem is constructed to resolve the question of whether there is any mathematical procedure for amalgamating individual preferences that results in a collectively rational preference ordering of all the possible outcomes.
The above can be taken as a preliminary characterisation of rational preference over options.
Some people find the Continuity axiom an unreasonable constraint on rational preference.
Sometimes rational choice theorists require preferences to be rational; preferences are assumed to be complete and transitive.
Neoclassical economics is a theory based on three key assumptions: individuals have rational preferences; individuals maximize utility, while firms maximize profits; and people choose independently, based on available information.
This approach would work with the public's rational preferences, and it would not assume that we know more than we in fact do about what health-care markets should look like.
The Port Royal Logic (Arnauld, 1662) showed how utilities and probabilities together determine rational preferences; de Finetti's betting analysis derives probabilities from utilities and rational preferences; von Neumann and Morgenstern (1944) derive utilities from probabilities and rational preferences.
Utilities (desirabilities) of outcomes, their probabilities, and rational preferences are all intimately linked.
