Building an Ordinal Utility Theory
The following points highlight the six axiom of preference while building up an ordinal utility theory. The axioms are: 1. Axiom of Completeness 2. Axiom of Reflexiveness 3. Axiom of Transitivity 4. Axiom of Continuity of Preferences 5. The Axiom of Dominance 6. The Axiom of Diminishing Marginal Rate of Substitution (MRS). 1. Axiom of Completeness: Assume that the consumer [...]