Axiomatic theories (1939)

Axiomatic theories relating to consumer behavior and rationality, and are an essential part of consumer demand theory and indifference curve analysis.

The axioms of rationality are:

– completeness (the ability to order every available combination of goods according to preference);

– transitivity (relationship between different combination preferences); and

– selection (the consumer will aim for the most desired combination).

The axioms of behavior comprise the axioms of dominance (also known as the axioms of greed), which are:

– continuity (relating to indifference curve analysis); and

– convexity (the assumption that the indifference curve will be convex to the origin).

Also see: consumer demand theory

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