If preferences exhibit the property of transitivity, then
A)the preferences are irrational.
B)individuals prefer more government involvement in private markets than do people whose preferences are not transitive.
C)preferences change over time more quickly than when preferences are not transitive.
D)preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow in Social Choice and Individual Values.

Question

Quizplus · Accepted Answer

If preferences exhibit the property of transitivity, it means that they satisfy one of the properties assumed to be desirable by Kenneth Arrow in his book Social Choice and Individual Values. Arrow's theorem shows that transitivity is one of the minimal requirements for a group decision-making process to result in a consistent and rational outcome. Therefore, preferences that exhibit transitivity are not irrational but rather satisfy an important condition for rationality and social choice. The other answer choices are not supported by the concept of transitivity.

If Preferences Exhibit the Property of Transitivity, Then