Question: Shweta makes the following choices between various of pairs of cuisines: C({Indian, Japanese}) = Indian C({Ethiopian, Chinese}) = Ethiopian C({Turkish, Thai}) = Turkish C({Japanese, Ethiopian})
Shweta makes the following choices between various of pairs of cuisines: C({Indian, Japanese}) = Indian C({Ethiopian, Chinese}) = Ethiopian C({Turkish, Thai}) = Turkish C({Japanese, Ethiopian}) = Japanese 1.1. Suppose that Shweta goes to a restaurant where she can choose one item from the following menu: {Chinese, Turkish, Indian, Japanese, Ethiopian, Thai}. Assume that Shweta has transitive, complete, and stable preferences. Also assume that Shweta makes choices by selecting the item that she prefers the most. Can we predict the item that she will choose from the menu? Explain? 1.2. Assign utilities to the six menu items, so that the utilities generate the four choices shown above (i.e. C({Indian, Japanese}) = Indian, C({Ethiopian, Chinese}) = Ethiopian, ... etc.) U(Indian) = _____ U(Japanese) = _____ U(Ethiopian) = _____ U(Chinese) = _____ U(Turkish) = _____ U(Thai) = _____ 1.3. Fill in preference relations or for the following choice pairs, so that Shweta's preferences (as expressed by the choices shown above) are necessarily intransitive: Thai ___ Japanese Turkish ___ Ethiopian 1.4. Are the utilities that you have listed in question 1.2. compatible with the preferences you have listed in question 1.3? Why or Why not?
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11 Predicting Shwetas Choice from the Menu Given Shwetas choices between pairs of cuisines are as follows CIndian Japanese Indian CEthiopian Chinese Ethiopian ... View full answer
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