Axiomatic Theories

Discipline: Economics

Axiomatic theories relating to consumer behavior and rationality, and are an essential part of indifference curve analysis and the theory of consumer demand.

The axioms of rationality are:

- completeness (the ability to order every available combination of goods according to preference);

- transitivity (relationship between different combination preferences); and

- selection (the consumer will aim for the most desired combination).

The axioms of behavior comprise the axioms of dominance (also known as the axioms of greed), which are:

- continuity (relating to indifference curve analysis); and

- convexity (the assumption that the indifference curve will be convex to the origin).

Also see: theory of consumer demand

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