Violation Of Completeness Axiom In Consumer Theory

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Brief proof of the violation of completeness axiom in consumer preference theory in strict preference and indifference situation Introduction In consumer preference theory, in order to arrive at a rational preference two axiom must be fulfilled that is completeness and transitivity. Without the two axioms it couldn’t be said for certain that a rational preference is being made. This paper would like to argue that strict preference and indifference preference are two situations where violation of the completeness axiom is being violated. Argument Strict preference Strict preference occurs when a consumer strictly prefer only one bundle of goods to another bundle, that is he wouldn’t consider another bundle in his preference. This would have a result of creating non-binary relations between the two bundles as the consumer would only consider one bundle not two in binary relation. As only one option could be considered here, there is a incomplete ability to make a comparison and evaluate alternatives in order to come up with a ranking order of the two bundle. The inability to come up with a ranking clearly violates the completeness axiom. Indifference preference Meanwhile, in the indifference preference a consumer prefer one bundle to another bundle as much as he prefers the other bundle to the one bundle. This would result in a consumer would view two bundles having the same preference ranking making him unable to form an opinion of which bundle he preferred more, thus making him unable to rank between the two bundle. The inability to rank the bundle constitutes a violation of the completeness axiom of the consumer preference theory. Conclusion Both the strict and indifference preference constitute a violation of the completeness axiom of the consumer preference theory as it would result in the inability of the consumer to form a ranking between the two sets

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