Humane engorgement Statistical theory

We have seen above that the two assumptions on which Humane-Consternation’s theory is based arc: first the consumer docs not regard the object of his choice as ‘sure prospects. Though the nature of the end is certain, one is nut certain as to how the end is to be achieved. The second assumption is that the consumer is nut able to discriminate clearly between two otherwise certainly distinct ends. It is uncertainly ill discernment as distinguished [nun uncertainly in  prospect of achieving a given iconic end which  provides a basis of Armstrong’s utility theory. Like Hicks. Armstrong makes use of the concept of indifference which arises from the Act that  the consumer i  unable to distinguish dearly between the two situations. But, unlike Hicks, his indifference (preference) is not transitive, i.e., it cannot he passed from one to the other, For instance, the consumer may not be hale to  distinguish between X and Y or between Y  and  difference between X and Z may be quite perceptible.

Strongman has introduced a concept of ‘preference intensity’ the intensity may he hi)!h, low or imperceptible. According to Armstrong,  marginal when t.he consumer is just able III perceive. This will happen when the two situation arc so near  each other that the consumer is larch y able to see Hat he prefers one  the other. The consumer may not he able 10 distinguish between these alluvial . II,’ will then be in a state of individual. Thus  criminality in Collegian’s definition  identity of the two tuition  is due III the triviality of difference between  there will not axis: a Collation of Condillac he two other points.

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