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chapter1_exercises

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5 views2 pages

chapter1_exercises

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zhenganczg
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1

1.B.4A

u(x) ≥ u(y) ⇔ u(x) = u(y) or u(x) > u(y)


u(x) = u(y) ⇔ x ∼ y ⇔ x ⪰ y and y ⪰ x
u(x) > u(y) ⇔ x ∼ y ⇔ x ⪰ y but not y⪰x

So u(·) represent ⪰ .

1.B.5B
First, we prove that if X is finite and every elements of X is strict(there
is no indiffernet), and ⪰ is rational preference relation on X, then there exists
a uility function:
1. Obviously it is true for N = 1
2. Assume it is true N = K - 1, we show that it is true for N = K:
Write X = {X1 , . . . , XK−1 , XK } . Without loss of generality, we can
assume that U (X1 ) > U (X2 ) > · · · > U (XK−1 ).
Since every elements of X is strict, there are three cases for U (XK ):

U (XK ) < U (X1 ) (1)


U (XK−1 ) < U (XK ) (2)
U (Xi ) < U (XK ) < U (Xj ) (3)

It is easy to see that U (K) represents the preference relation ⪰.


Suppose next that there may be indifferent between two elements of
X = {x1 , x2 , . . . , xn }. For each n = 1, . . . , N , define Xn = {xm ∈ X : xm ∼
xn }. Then, by the reflexivity of ∼, ∪n Xn = X. Also, by the transiticity of
∼, if Xn ̸= Xm , then Xn ∩ Xm = ∅. So, let M be a subset of {1, . . . , N } such
that X = ∪m∈M Xm and Xm ̸= Xn for any n, m ∈ M with m ̸= n. There
is no indifferent between two different elements of {Xm : m ∈ M }. Thus,
by the above result, there exists a utility function U ∗ () that represents ⪰.
2

Then for any other elements xn : xn ∼ xm , define U ∗ (xn ) = U ∗ (xm ). So U ∗ ()


represents ⪰.
1.C.1B
If C({x, y, z}) = {y}, then the WA would imply that {y} ∈ C({x, y}) which
violates the condition. Hence y ∈
/ C({x, y, z}).
1.C.2B
Suppose that B, B ′ ∈ B, x, y ∈ B, x, y ∈ B ′ , x ∈ C(B)y ∈ C(B ′ ) and choice
structrue (B, C(·)) satisfies weak axiom, we obtain x ∈ C(B ′ ) and y ∈ C(B).
Hence property is also satisfied.
Suppose conversely that the above property is satisfied. Let B, B ′ ∈
B, x, y ∈ B, x, y ∈ B ′ , x, y ∈ C(B)x, y ∈ C(B ′ ), the above condition also
satisfies weak axiom.
1.D.2A
According to exercise 1.B.5B , Let utility function u(·) represents ⪰. Since X
is finite, for any B ⊂ XwithB ̸= ∅, there exists x ∈ B such that u(x) ≥ u(y)
for all y ∈ B, which means x ⪰ y for every y ∈ B. Then x ∈ C ∗ (B, ⪰) and
then C(B) ̸= ∅.
1.D.3B
If C({x, y}) = x, C({y, z}) = y, C({z, x}) = z and choice structrue satisfies
weak axiom, then C({x, y, z}) = x, y, z and then C({x, y}) = x, y, C({y, z}) =
y, z, C({z, x}) = z, x. So this choice structrue must violate the weak axiom.

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