Politická ekonomie 2007, 55(3) | DOI: 10.18267/j.polek.606
Transitivity and dominance: normative and empirical position of two cornerstones of economic models of decision-making
Transitivity and dominance are key concepts built deep into the fundaments of most economic models of decision-making. One of the arguments in favour of using the two concepts is that they are normative, i.e., symptomatic of perfect, rational decision-making. This paper describes several specific axioms stemming from these concepts and appearing in axiomatic models of decision-making, gives possible arguments speaking for or against the normativeness of a given concept and adds examples of empirically observed violations of the concept by human decision-making. In the conclusion, it offers an assessment of whether the use of transitivity and dominance in economic models of decision-making is justified or not.
Keywords: transitivity, stochastic transitivity, dominance, stochastic dominance, axioms, lexicographic semiorder, Condorcet paradox
JEL classification: D11, D12, D81
Published: June 1, 2007 Show citation
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