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Re:Fed takes over AIG by yummyfajitas on Wednesday September 17, 2008 @09:22AM (#306981)
All this really means is that preferences are transitive. I.e., if I prefer a puppy to a wii, and prefer a wii to cabbage, then I prefer a puppy to cabbage. That's not an unreasonable assumption.

It's an easy topology exercise to prove that if preferences are transitive, then a utility function exists (I think you may also need to assume a countable number of goods/services).

Re:Fed takes over AIG by netcan on Wednesday September 17, 2008 @07:07PM (#307666)
Economists don't assume that preferences are transitive between people. But within one person, I think they do.