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.

Microeconomics