Monotonicity

Summary

• Preferences are said to be monotonic if there are no bad goods .
• Mathematically: Preferences are monotonic if \(\left( y_1,y_2 \right)≽\left( x_1,x_2 \right)\) for all bundles where
• \(y_1>x_1, y_2≥x_2\) or
• \(y_1≥x_1, y_2>x_2\)
• Preferences are said to be strictly monotonic if there are no neutral or bad goods (more is better).
• Mathematically: Preferences are strictly monotonic if \(\left( y_1,y_2 \right)≻\left( x_1,x_2 \right)\) for all bundles where
• \(y_1>x_1, y_2≥x_2\) or
• \(y_1≥x_1, y_2>x_2\)