Smartness Marina Preference Theory
Armstrong is essentially orthodox cardinal and stands in Marshall’s erudition. lie has fill gad his own tools establish agriculturalist. I theory is schuss two interdependent concepts,uncertainty aim indifference.
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 conic end which provides a basis of Armstrong’s utility theory. Like Hicks. Armstrong makes use of the concept of indifference which arises from the Tact that the consumer is 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 Z, difference between X and Z may be quite perceptible.
Strongman has introduced a concept of preference intensity the intensity may he low or imperceptible. According to Armstrong, marginal when t.he consumer is just able perceive. This will happen when the two situation arc so near each other that the consumer is larch able to see. That he prefers one to the other. The consumer may not he able 10 distinguish between these is due the triviality of difference between stallions. This relation of indifference will there will not axis a Collation of Condillac he- Creditworthy other points.
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