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Assumption of Transitive Preferences

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PPGPortal > Home > Concept Dictionary > A > Assumption of Transitive Preferences
 
 
Assumption of Transitive Preferences

If a particular consumer prefers bundle X to bundle Y, and also prefers bundle Y to bundle Z, then the consumer must prefer bundle X to bundle Z.

(Dwayne Benjamin, PPG 1002)

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The assumption of transitive preferences implies that it is impossible for two indifference curves to cross.

 

     

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