Transitivity and dominance: normative and empirical position of two cornerstones of economic models of decision-making

Michal Skořepa ()

Politická ekonomie, 2007, vol. 2007, issue 3

Abstract: 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 (search for similar items in EconPapers)
JEL-codes: D11 D12 D81 (search for similar items in EconPapers)
Date: 2007
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DOI: 10.18267/j.polek.606

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