ECO206Y1 Lecture : Topic 1 - Preferences Preference.
Document Summary
Topic 1 preference (lecture 2 sept 21st) Puzzles (intro to consumer choices: individuals in need receive voucher"s (housing, food) or cash w/no restrictions with respect to use; Q: which one is more preferable: cell phone company setting up pricing program: Plan 1: fixed sum, w/unlimited minutes & data; Plan 2: fixed sum, w/ x # of minutes & y # of data, and charge you for additional units; Plan 3: no fixed sum, charge per unit; - suppose n goods, defined by x1, x2, , xn. - consumers would be able to compare goods in two bundles, be able to rank/weigh these goods from. - common that preferences for different customers are different (different values) - x > y consumer strictly prefers x to y. - x y consumer is indifferent between x and y. - x y consumer weakly prefers x to y or consumer prefer x to y or indifferent .