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Preference (economics)
In economics and other social sciences, preference is the order that an agent gives to alternatives based on their relative utility. A process which results in an "optimal choice" (whether real or theoretical). Preferences are evaluations and concern matters of value, typically in relation to practical reasoning. The character of the preferences is determined purely by a person's tastes instead of the good's prices, personal income, and the availability of goods. However, people are still expected to act in their best (rational) interest. Rationality, in this context, means that when individuals are faced with a choice, they would select the option that maximizes self-interest. Moreover, in every set of alternatives, preferences arise. The belief of preference plays a key role in many disciplines, including moral philosophy and decision theory. The logical properties that preferences possess have major effects also on rational choice theory, which has a carryover effect on all m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Preference Example
In psychology, economics and philosophy, preference is a technical term usually used in relation to choosing between alternatives. For example, someone prefers A over B if they would rather choose A than B. Preferences are central to decision theory because of this relation to behavior. Some methods such as Ordinal Priority Approach use preference relation for decision-making. As connative states, they are closely related to desires. The difference between the two is that desires are directed at one object while preferences concern a comparison between two alternatives, of which one is preferred to the other. In insolvency, the term is used to determine which outstanding obligation the insolvent party has to settle first. Psychology In psychology, preferences refer to an individual's attitude towards a set of objects, typically reflected in an explicit decision-making process (Lichtenstein & Slovic, 2006). The term is also used to mean evaluative judgment in the sense of lik ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Utility Maximization Problem
Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stuart Mill. In microeconomics, the utility maximization problem is the problem consumers face: "How should I spend my money in order to maximize my utility?" It is a type of optimal decision problem. It consists of choosing how much of each available good or service to consume, taking into account a constraint on total spending (income), the prices of the goods and their preferences. Utility maximization is an important concept in consumer theory as it shows how consumers decide to allocate their income. Because consumers are rational, they seek to extract the most benefit for themselves. However, due to bounded rationality and other biases, consumers sometimes pick bundles that do not necessarily maximize their utility. The utility maximization bundle of the consumer is also not set and can change over time depending on their individual preferences of goods, price changes and incr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wayback Machine
The Wayback Machine is a digital archive of the World Wide Web founded by the Internet Archive, a nonprofit based in San Francisco, California. Created in 1996 and launched to the public in 2001, it allows the user to go "back in time" and see how websites looked in the past. Its founders, Brewster Kahle and Bruce Gilliat, developed the Wayback Machine to provide "universal access to all knowledge" by preserving archived copies of defunct web pages. Launched on May 10, 1996, the Wayback Machine had more than 38.2 million records at the end of 2009. , the Wayback Machine had saved more than 760 billion web pages. More than 350 million web pages are added daily. History The Wayback Machine began archiving cached web pages in 1996. One of the earliest known pages was saved on May 10, 1996, at 2:08p.m. Internet Archive founders Brewster Kahle and Bruce Gilliat launched the Wayback Machine in San Francisco, California, in October 2001, primarily to address the problem of web co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Games And Economic Behavior
''Games and Economic Behavior'' (''GEB'') is a journal of game theory published by Elsevier. Founded in 1989, the journal's stated objective is to communicate game-theoretic ideas across theory and applications. It is considered to be the leading journal of game theory and one of the top journals in economics, and it is one of the two official journals of the ''Game Theory Society''. Apart from game theory and economics, the research areas of the journal also include applications of game theory in political science, biology, computer science, mathematics and psychology. The founding editor-in-chief of ''GEB'' is Ehud Kalai. Current editor-in-chief is Hervé Moulin (since January 1, 2021). Each paper is initially assigned by GEB's chief editor to one of the seven editors (including himself). The chief editor has final decision authority. Impact Factor According to the '' Journal Citation Reports'', the journal has a 2020 impact factor The impact factor (IF) or journal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Morgenstern's Thirteen Problems
This is a list of some of the major unsolved problems, puzzles, or questions in economics. Some of these are theoretical in origin and some of them concern the inability of orthodox economic theory to explain an empirical observation. Capital theory *Cambridge capital controversy: The Cambridge capital controversy is a dispute in economics that started in the 1950s. The debate concerned the nature and role of capital goods and a critique of the neoclassical vision of aggregate production and distribution. The question of whether the natural growth rate is exogenous, or endogenous to demand (and whether it is input growth that causes output growth, or vice versa), lies at the heart of the debate. The resolution of the debate has not been agreed upon by economists. * Transformation problem: The transformation problem is the problem specific to Marxist economics, and not to economics in general, of finding a general rule by which to transform the values of commodities based on social ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Von Neumann
John von Neumann (; hu, Neumann János Lajos, ; December 28, 1903 – February 8, 1957) was a Hungarian-American mathematician, physicist, computer scientist, engineer and polymath. He was regarded as having perhaps the widest coverage of any mathematician of his time and was said to have been "the last representative of the great mathematicians who were equally at home in both pure and applied mathematics". He integrated pure and applied sciences. Von Neumann made major contributions to many fields, including mathematics ( foundations of mathematics, measure theory, functional analysis, ergodic theory, group theory, lattice theory, representation theory, operator algebras, matrix theory, geometry, and numerical analysis), physics ( quantum mechanics, hydrodynamics, ballistics, nuclear physics and quantum statistical mechanics), economics ( game theory and general equilibrium theory), computing ( Von Neumann architecture, linear programming, numeri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rational Agent
A rational agent or rational being is a person or entity that always aims to perform optimal actions based on given premises and information. A rational agent can be anything that makes decisions, typically a person, firm, machine, or software. The concept of rational agents can be found in various disciplines such as artificial intelligence, cognitive science, decision theory, economics, ethics, game theory, and the study of practical reason. Economics In reference to economics, rational agent refers to hypothetical consumers and how they make decisions in a free market. This concept is one of the assumptions made in neoclassical economic theory. The concept of economic rationality arises from a tradition of marginal analysis used in neoclassical economics. The idea of a rational agent is important to the philosophy of utilitarianism, as detailed by philosopher Jeremy Bentham's theory of the felicific calculus, also known as the hedonistic calculus. The action a rational ag ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revealed Preference
Revealed preference theory, pioneered by economist Paul Anthony Samuelson in 1938, is a method of analyzing choices made by individuals, mostly used for comparing the influence of policies on consumer behavior. Revealed preference models assume that the preferences of consumers can be revealed by their purchasing habits. Revealed preference theory arose because existing theories of consumer demand were based on a diminishing marginal rate of substitution (MRS). This diminishing MRS relied on the assumption that consumers make consumption decisions to maximise their utility. While utility maximisation was not a controversial assumption, the underlying utility functions could not be measured with great certainty. Revealed preference theory was a means to reconcile demand theory by defining utility functions by observing behaviour. Therefore, revealed preference is a way to infer the preferences of individuals given the observed choices. It contrasts with attempts to directly meas ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Binary Relation
In mathematics, a binary relation associates elements of one set, called the ''domain'', with elements of another set, called the ''codomain''. A binary relation over sets and is a new set of ordered pairs consisting of elements in and in . It is a generalization of the more widely understood idea of a unary function. It encodes the common concept of relation: an element is ''related'' to an element , if and only if the pair belongs to the set of ordered pairs that defines the ''binary relation''. A binary relation is the most studied special case of an -ary relation over sets , which is a subset of the Cartesian product X_1 \times \cdots \times X_n. An example of a binary relation is the "divides" relation over the set of prime numbers \mathbb and the set of integers \mathbb, in which each prime is related to each integer that is a multiple of , but not to an integer that is not a multiple of . In this relation, for instance, the prime number 2 is related to numbe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Logical Positivism
Logical positivism, later called logical empiricism, and both of which together are also known as neopositivism, is a movement in Western philosophy whose central thesis was the verification principle (also known as the verifiability criterion of meaning). This theory of knowledge asserted that only statements verifiable through direct observation or logical proof are meaningful in terms of conveying truth value, information or factual content. Starting in the late 1920s, groups of philosophers, scientists, and mathematicians formed the Berlin Circle and the Vienna Circle, which, in these two cities, would propound the ideas of logical positivism. Flourishing in several European centres through the 1930s, the movement sought to prevent confusion rooted in unclear language and unverifiable claims by converting philosophy into "scientific philosophy", which, according to the logical positivists, ought to share the bases and structures of empirical sciences' best examples, such a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Anton Barten
Anton Peter Barten (14 January 1930 – 15 June 2016)Barten, A.P. in ''De leden van de Koninklijke Nederlandse Akademie van Wetenschappen: een demografisch perspectief: 1808 tot 2008'', p. 251. was a Dutch economist. Barten was born in Amsterdam. He studied economics at the University of Amsterdam and obtained his PhD at the Erasmus University Rotterdam. He worked at the Econometric Ins ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ragnar Frisch
Ragnar Anton Kittil Frisch (3 March 1895 – 31 January 1973) was an influential Norwegian economist known for being one of the major contributors to establishing economics as a quantitative and statistically informed science in the early 20th century. He coined the term econometrics in 1926 for utilising statistical methods to describe economic systems, as well as the terms microeconomics and macroeconomics in 1933, for describing individual and aggregate economic systems, respectively. He was the first to develop a statistically informed model of business cycles in 1933. Later work on the model together with Jan Tinbergen won the two the first Nobel Memorial Prize in Economic Sciences in 1969. Frisch became dr.philos. with a thesis on mathematics and statistics at the University of Oslo in 1926''.'' After his doctoral thesis, he spent five years researching in the United States at the University of Minnesota and Yale University. After teaching briefly at Yale from 1930-3 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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