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 desireable 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 axioms of rationality assumed by Kenneth Arrow in Social Choice and Individual Values. This axiom states that if a person prefers option A over option B and option B over option C, then they should prefer option A over option C. Therefore, transitive preferences are desirable in social choice theory.

If Preferences Exhibit the Property of Transitivity,then