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> quite simple and neat observation, actually. Did you read my comment? That's exactly what I wrote. This is not a "theorem". Theorems live inside theories, th
by gnulinux 8y ago
> quite simple and neat observation, actually.
Did you read my comment? That's exactly what I wrote. This is not a "theorem". Theorems live inside theories, they're logically implied by axioms of the theories. That basic arithmetic proves nothing of the sort.
- shitgoose 8y ago"Theorems live inside theories" - sorry, didn't get that. axioms: * given same price, consumer goes for higher grade product. * as relative price difference decreases, some consumers start going for higher grade product. * rules of arithmetic. in any case, it seems that we have appreciation for different things. you prefer detailed verbosity, i prefer a simple idea that can be easily understood. great and profound ideas are not necessarily complex, many of them are quite simple. let's keep them that way.
- zwaps 8y agoThen it is a theorem, as it is tautologically implied by certain axioms imposed on preference relations or choice correspondences, such as completeness, transitivity and a notion of continuity. Since the whole theory won't fit in one wikipedia article, I suggest you read the first chapters or either a) Mas-Collel, Whinston and Green or b) Kreps, Microeconomic Foundations I (not the old undergrad book from him) This would provide you with the theory to understand this result in a more mathematical correct way.