Empirical evidence for intransitivity in consumer preferences
The present paper addresses one of the most important assumptions in consumer preference patterns: transitivity. This assumption states that, logically, selections between goods are rational because of the transitivity statement, which posits that people always prefer goods in the following order: A...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2020-03-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844020303042 |
| _version_ | 1818598551696965632 |
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| author | Jorge Guadalupe-Lanas Jorge Cruz-Cárdenas Verónica Artola-Jarrín Andrés Palacio-Fierro |
| author_facet | Jorge Guadalupe-Lanas Jorge Cruz-Cárdenas Verónica Artola-Jarrín Andrés Palacio-Fierro |
| author_sort | Jorge Guadalupe-Lanas |
| collection | DOAJ |
| description | The present paper addresses one of the most important assumptions in consumer preference patterns: transitivity. This assumption states that, logically, selections between goods are rational because of the transitivity statement, which posits that people always prefer goods in the following order: A is preferred to B, and B is preferred to C, so A is preferred to C. With the aim of proving this principle's validity, we conducted an experiment with 70 subjects and probed their preferences in relation to edible and nonedible goods. We used a survey methodology, which allowed us to analyze three distinct situations: 1) individuals faced with goods choices without restrictions; 2) individuals facing budget restrictions and price changes; and 3) individuals faced with decreased disposable income. The results mostly showed that there was no evidence of transitivity in consumer preferences. On average, transitivity appeared in only 8% of the sample, and in cases where transitivity was proved, it was revealed to be strong. The preferences were transitive primarily in relation to edible rather than nonedible goods. |
| first_indexed | 2024-12-16T12:05:30Z |
| format | Article |
| id | doaj.art-5c5e62f0e60d4720b82da058760467f0 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-12-16T12:05:30Z |
| publishDate | 2020-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-5c5e62f0e60d4720b82da058760467f02022-12-21T22:32:20ZengElsevierHeliyon2405-84402020-03-0163e03459Empirical evidence for intransitivity in consumer preferencesJorge Guadalupe-Lanas0Jorge Cruz-Cárdenas1Verónica Artola-Jarrín2Andrés Palacio-Fierro3Universidad Tecnológica Indoamérica, Machala y Sabanilla, Quito, Ecuador; Corresponding author.Universidad Tecnológica Indoamérica, EcuadorBanco Central del Ecuador, EcuadorUniversidad Tecnológica Indoamérica, EcuadorThe present paper addresses one of the most important assumptions in consumer preference patterns: transitivity. This assumption states that, logically, selections between goods are rational because of the transitivity statement, which posits that people always prefer goods in the following order: A is preferred to B, and B is preferred to C, so A is preferred to C. With the aim of proving this principle's validity, we conducted an experiment with 70 subjects and probed their preferences in relation to edible and nonedible goods. We used a survey methodology, which allowed us to analyze three distinct situations: 1) individuals faced with goods choices without restrictions; 2) individuals facing budget restrictions and price changes; and 3) individuals faced with decreased disposable income. The results mostly showed that there was no evidence of transitivity in consumer preferences. On average, transitivity appeared in only 8% of the sample, and in cases where transitivity was proved, it was revealed to be strong. The preferences were transitive primarily in relation to edible rather than nonedible goods.http://www.sciencedirect.com/science/article/pii/S2405844020303042Consumer preferences patternsEdible and nonedible goodsTransitivity assumptionPreference reversal phenomenonStrong and weak transitivityBehavioral economics |
| spellingShingle | Jorge Guadalupe-Lanas Jorge Cruz-Cárdenas Verónica Artola-Jarrín Andrés Palacio-Fierro Empirical evidence for intransitivity in consumer preferences Heliyon Consumer preferences patterns Edible and nonedible goods Transitivity assumption Preference reversal phenomenon Strong and weak transitivity Behavioral economics |
| title | Empirical evidence for intransitivity in consumer preferences |
| title_full | Empirical evidence for intransitivity in consumer preferences |
| title_fullStr | Empirical evidence for intransitivity in consumer preferences |
| title_full_unstemmed | Empirical evidence for intransitivity in consumer preferences |
| title_short | Empirical evidence for intransitivity in consumer preferences |
| title_sort | empirical evidence for intransitivity in consumer preferences |
| topic | Consumer preferences patterns Edible and nonedible goods Transitivity assumption Preference reversal phenomenon Strong and weak transitivity Behavioral economics |
| url | http://www.sciencedirect.com/science/article/pii/S2405844020303042 |
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