Intransitive Preferences in Retailing

Abstract

According to Arrow's well-known ‘parardox of majority voting’, intransitivities can occur in the attempt to establish a social, inter-personal preference ordering. As has been shown by May [1954], for example, a logical equivalent of this paradox can also arise in the case of individual, personal preference orderings. The present paper shows that such cases are quite plausible and natural, in as common a context as the choice of a grocery store. The paper also shows that intransitivities may occur more generally, as a result of decision rules other than the logical equivalent of majority voting.

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