If preferences exhibit the property of transitivity, then
A)the preferences are irrational.
B)people prefer more government involvement in markets than do people whith non-transitive preferences.
C)preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow.
D)preferences change over time faster than when preferences are not transitive.

Question

Quizplus · Accepted Answer

Transitivity in preferences means if a person prefers option A over B, and B over C, then they also prefer A over C. This property is one of the assumptions in Kenneth Arrow's impossibility theorem, which discusses the conditions for creating a fair and rational social choice mechanism. It is considered a desirable property because it reflects consistency in decision-making, not irrationality, preference for government involvement, or instability over time.

If Preferences Exhibit the Property of Transitivity, Then