Rational preferences Flashcards

1
Q

What is the difference between “A preferred to B” and “B not preferred to A” for two outcomes A and B?

A

In the first case, A has a higher utility than B for the agent. In the second case, it means that B has a utility that is lower than or equal to A and hence the agent could also be indifferent between A and B.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly