Orderability (Utility Theory)

utility-theory

Definition

Orderability (Utility Theory)

Given any two lotteries, a rational agent cannot avoid deciding which one it prefers, or whether it is indifferent between them:

Exactly one of them holds:

1. $A\succ B$ (prefers $A$ over $B$)
2. $B\succ A$ (prefers $B$ over $A$)
3. $A\sim B$ (indifferent between $A$ and $B$)