AskDefine | Define preferred

Dictionary Definition

prefer

Verb

1 like better; value more highly; "Some people prefer camping to staying in hotels"; "We prefer sleeping outside"
2 select as an alternative; choose instead; prefer as an alternative; "I always choose the fish over the meat courses in this restaurant"; "She opted for the job on the East coast" [syn: choose, opt]
3 promote over another; "he favors his second daughter" [syn: favor, favour]
4 give preference to one creditor over another [also: preferring, preferred]preferred adj
1 more desirable than another; "coffee is preferable to tea"; "Danny's preferred name is `Dan'" [syn: preferable]
2 preferred above all others and treated with partiality; "the favored child" [syn: favored, favorite(a), favourite(a), pet]preferred See prefer

User Contributed Dictionary

English

Pronunciation

Adjective

preferred
  1. Favoured

Translations

Verb

preferred
  1. past of prefer

Extensive Definition

Preference (also called "taste" or "penchant") is a concept, used in the social sciences, particularly economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it can be seen as a source of motivation. In cognitive sciences, individual preferences enable choice of objectives/goals.
Also, more consumption of a normal good is generally (but not always) assumed to be preferred to less consumption.

Preference in economics

In microeconomics, preferences of consumers and other entities are modelled with preference relations.
Let S be the set of all "packages" of goods and services (or more generally "possible worlds"). Then ≤ is a preference relation on S if it is a binary relation on S such that a ≤ b if and only if b is at least as preferable as a. It is conventional to say "b is weakly preferred to a", or just "b is preferred to a". If a ≤ b but not b ≤ a, then the consumer strictly prefers b to a, which is written a < b. If a ≤ b and b ≤ a then the consumer is indifferent between a and b. Strict weak ordering|Total_preorders|weak order (or total preorder)}}.
Completeness is more philosophically questionable. In most applications, S is an infinite set and the consumer is not conscious of all preferences. For example, one does not have to make up one's mind about whether one prefers to go on holiday by plane or by train if one does not have enough money to go on holiday anyway (although it can be nice to dream about what one would do if one would win the lottery). However, preference can be interpreted as a hypothetical choice that could be made rather than a conscious state of mind. In this case, completeness amounts to an assumption that the consumer can always make up their mind whether they are indifferent or prefer one option when presented with any pair of options.
Behavioral economics investigates the circumstances when human behavior is consistent and inconsistent with these assumptions.
The indifference relation ~ is an equivalence relation. Thus we have a quotient set S/~ of equivalence classes of S, which forms a partition of S. Each equivalence class is a set of packages that is equally preferred. If there are only two commodities, the equivalence classes can be graphically represented as indifference curves. Based on the preference relation on S we have a preference relation on S/~. As opposed to the former, the latter is antisymmetric and a total order.
It is usually more convenient to describe a preference relation on S with a utility function u : S \rightarrow \textbf R, such that u(a) ≤ u(b) if and only if a ≤ b. A continuous utility function always exists if ≤ is a continuous rational preference relation on R^n. For any such preference relation, there are many continuous utility functions that represent it. Conversely, every utility function can be used to construct a unique preference relation.
All the above is independent of the prices of the goods and services and independent of the budget of the consumer. These determine the feasible packages (those he or she can afford). In principle the consumer chooses a package within his or her budget such that no other feasible package is preferred over it; the utility is maximized.

Notation

Sometimes symbols like \prec \succ \precsim \succsim \sim are used as a reminder that equivalence is not necessarily equality.

References

  • Kreps, David (1990). A Course in Microeconomic Theory. New Jersey: Princeton University Press. ISBN 0-691-04264-0
  • Mas-Colell, Andreu; Whinston, Michael; & Green, Jerry (1995). Microeconomic Theory. Oxford: Oxford University Press. ISBN 0-19-507340-1
preferred in Czech: Preference
preferred in German: Präferenzordnung
preferred in Spanish: Preferencia
preferred in French: Préférence
preferred in Korean: 선호
preferred in Hungarian: Preferánsz
preferred in Finnish: Preferenssi
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