Axiomatic Theories
Axiomatic theories relating to consumer behavior and rationality, and are an essential part of consumer demand theory and indifference curve analysis.
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).
Written by: Iyer Subramanian
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