Assumption of Monotonic Preferences

… a core term used in Economic Analysis and Atlas102

Definition

The assumption of monotonic preferences means that more is better no matter how much more.

As noted in WikiBooks (reference below):

“The monotonicity assumption translates roughly to “more is better”. Though trivial in some instances, choice sets including economic ‘bads’ such as pollution may violate monotonicity.”

“Notice that monotonicity, translating to “more is better, even for infinitesimal deviations”, implies local non-satiation, but not vice-versa.”

Atlas topic, subject, and course

Consumer Theory and Elasticity of Demand and Supply (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

WikiBooks, Advanced Microeconomics – Preference Relations, at https://en.wikibooks.org/wiki/Advanced_Microeconomics/Preference_Relations#Convexity, accessed 12 May 2016.

Page created by: Ian Clark, last modified 12 May 2016.