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