清华经管IMBA管理经济学课件3

1. Completeness: Preferences are assumed to be complete. In other words, consumers can compare and rank all possible baskets Thus baskets. Thus, for any two market baskets A and B, a consumer will prefer A to B, will prefer B to A, or will be indifferent between the two. By indifferent we mean that a person will be equally satisfied with either basket basket.
● indifference map p Graph p containing g a set of indifference curves showing the market baskets among which a consumer is indifferent.
Figure 3.3 An Indifference Map
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3.1
CONSUMER PREFERENCES
Indifference Maps
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CONSUM来自百度文库R PREFERENCES
Indifference Curves ●indifference curve Curve representing p g all combinations of market
Chap pter 3: Con nsumer Be ehavior
Units of Food 20 10 40 30 10 10
Units of Clothing 30 50 20 40 20 40
B D E G H
To explain the theory of consumer behavior, we will ask whether consumers prefer one market basket to another.
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3.1
CONSUMER PREFERENCES
Some Basic Assumptions about Preferences
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Consumer Behavior
●theory of consumer behavior Description of how consumers allocate incomes among different goods and services to maximize their well-being. Consumer behavior is best understood in three distinct steps:
CHAPTER 3 OUTLINE
3 1 Consumer 3.1 C P Preferences f 3.2 Budget Constraints 3.3 Consumer Choice
Chap pter 3: Con nsumer Be ehavior
3.4 Revealed Preference 3.5 Marginal Utility and Consumer Choice 3.6 Cost-of-Living Indexes
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Microeconomics • Pindyck/Rubinfeld, 7e.
3.1
CONSUMER PREFERENCES
Indifference Curves
Figure 3.1 Describing Individual Preferences
Chap pter 3: Con nsumer Be ehavior
Because more of each good is preferred to less, we can compare market baskets in the shaded areas. areas Basket A is clearly preferred to basket G, while E is clearly preferred to A. However, A cannot be compared with i h B, D, or H without ih additional ddi i l information.
Chap pter 3: Con nsumer Be ehavior
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Chap pter 3: Con nsumer Be ehavior
An indifference map is a set of indifference curves that d describes ib a person's ' preferences. Any market basket on indifference curve U3, such as basket A, is preferred to any basket on curve U2 (e.g., basket B), which in turn is preferred to any basket on U1, such as D.
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CONSUMER PREFERENCES
Market Baskets ●market basket (or bundle) of one or more goods. List with specific quantities
TABLE 3.1 Alternative Market Baskets Market Basket A
CHAPTER
3
Consumer Behavior
Prepared by: Fernando & Yvonn Quijano
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Microeconomics • Pindyck/Rubinfeld, 7e.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Microeconomics • Pindyck/Rubinfeld, 7e.
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CONSUMER PREFERENCES
Some Basic Assumptions about Preferences 2. Transitivity: Preferences are transitive. Transitivity means that if a consumer prefers basket A to basket B and basket B to basket bas e C, then e the e co consumer su e a also so prefers p e e s A to o C. Transitivity a s y is s normally regarded as necessary for consumer consistency. 3. More is better than less: Goods are assumed to be desirable—i.e., to be good. Consequently, consumers always prefer more of any good to less. In addition, consumers are never satisfied ti fi d or satiated; ti t d more is i always l b better, tt even if j just ta little better. This assumption is made for pedagogic reasons; namely, it simplifies the graphical analysis. Of course, some goods, d such h as air i pollution, ll ti may b be undesirable, d i bl and d consumers will always prefer less. We ignore these “bads” in the context of our immediate discussion.
baskets that provide a consumer with the same level of satisfaction.
Figure 3.2 An Indifference Curve
Chap pter 3: Con nsumer Be ehavior
The indifference curve U1 that passes through market basket A shows h all ll b baskets k t th that t give i the consumer the same level of satisfaction as does market basket A; these include b k t B and baskets d D. Our consumer prefers basket E, which lies above U1, to A, but prefers A to H or G, which lie below U1.
Chap pter 3: Con nsumer Be ehavior
Note that these preferences ignore costs. A consumer might prefer steak to hamburger but buy hamburger because it is cheaper.
Chap pter 3: Con nsumer Be ehavior
1. 2. 3.
Consumer preferences Budget constraints Consumer choices
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