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Preference Logic

# Preference Logic

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A Magic Lab presentation among my colleagues.
A Magic Lab presentation among my colleagues.

categoriesTypes, Research

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03/06/2012

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Preference Logic

Pramod Parajuli
2011
Preference Logic Pramod Parajuli, 2011
1
Preference Logic Pramod Parajuli, 2011
2
~C
1
~C
2
~…~C
997
~C
998
~C
999
Solution: use of ‘Just Noticeable Di

erence’ (JND)
i

j
i

, u(
i
)-u(C
j
)


δ

δ
> 0
~C
1
~C
2

997
~C
998
~C
999

Preferencesare states of mind whereaschoicesare actions.
Pramod Parajuli, 2011Preference Logic
3

The problem domain
!

Optimal solutions are di
cult to obtain.
!

Finding sub-optimal solutions

Relaxing the objective function or

Relaxing the constraints
Pramod Parajuli, 2011Preference Logic
4
Agenda
!

To explore preference logic
Pramod Parajuli, 2011Preference Logic
5
Preference types
!

Label preference, e.g.
nite set and alternatives
!

Object preferences, e.g. orange vs. apple
!

Action-object preference, e.g. drinking tea or drinking co

ee
!

!

and many other types: intrinsic, extrinsic, conditional preferences etc.
Pramod Parajuli, 2011Preference Logic
6
Preference operators
!

Preference operator:

e.g.
A

B

transitive, if
A

B
and
B

, then
A

!

Indi

erence: ~
e.g.
A~B

re
exive, if
A~B
, then
B~A
!

At least as good as:

e.g.
A

B

transitive, re
exive

Pramod Parajuli, 2011Preference Logic
7

Basic preference operator
!

At least as good as:

A

B
!

Preference:

A

B
i


A

B
and
¬(B

A)
!

Indi

erence: ~
A~B
i


A

B
and
B

A
Pramod Parajuli, 2011Preference Logic
8
Choice
!

Choice is revealed preference (action).
!

Choice function
Let ‘
’ be a choice function.If
’ is applied for set of alternatives ‘
B
’ thenfor all
B
A: C(B)
B,if B
Ø, then C(B)
Ø
Pramod Parajuli, 2011Preference Logic
9
A  B
Choice properties (social)
!

α
– property (Cherno

)
If
B
A
then
B
C(A)
C(B)

Problem:
C({A,B,C}) = {A}C({A,B}) = {B} B = Ø
!

β
– property
If B
A
and
X,Y
C(B)
, then
X
C(A)
i


C(A)
Problem: One must be Australia champion to become world champion.
!

!
- property (expansion)
C(A
1
)
C(A
n
)
C(A
1
A
n
)
Pramod Parajuli, 2011Preference Logic
10
Choice properties (economic)
!

Weak axiom of revealed preference (WARP)
If
X,Y
A
and
X
C(A),
then for all
B
,if
X
B, and Y
C(B),
then
X
C(B)

Problem: o

ensive choices
!

Strong axiom of revealed preference (SARP)
Recursive closure of WARPIn words:
From a set of alternatives A
1
, if X is chosen while Y is available, and if in some other sets alternatives A
2
, Y is chosen while Z is available, then therecan be no set of alternatives containing alternatives X and Z for which Z ischosen but X is not.
Pramod Parajuli, 2011Preference Logic
11

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