The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

State Preference Approach

  • H. M. Polemarchakis
Reference work entry


Under certainty, with commodities iI, individual preferences are defined over commodity bundles c = (ci : iI), which are the objects of choice of individuals. Under uncertainty, production possibilities and individual and aggregate endowments, for instance, may vary with the realization of random states of nature sS. It is then necessary to define individual preferences over plans \( \overrightarrow{c}=\left(c(s);s\in S\right) \) which assign to each state of nature a commodity bundle.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • H. M. Polemarchakis
    • 1
  1. 1.