Congruence axiom 2026-10-14
Past exam of the mathematics course of the University of Cambridge 2004 iii Paper 36 1 b Solution Created 2026-10-03 Updated 2026-10-14
The congruence axiom requires that an affordable alternative indirectly revealed at least as desirable as a chosen alternative is itself chosen. In the notation of part (a),Equivalently, a chosen bundle and an affordable but unchosen bundle satisfy . Since already holds, this means . The axiom therefore distinguishes a genuine strict preference for a chosen bundle from indifference between two chosen bundles; it applies to the entire demand correspondence, including budgets with several chosen alternatives.
Past exam of the mathematics course of the University of Cambridge 2004 iii Paper 36 1 c Solution Created 2026-10-03 Updated 2026-10-14
First pass from the preorder to a partial order. Define the indifference relation by and . Reflexivity and transitivity make this an equivalence relation. On the quotient set , putTransitivity makes this independent of the representatives, and the quotient relation is antisymmetric, hence a partial order.
We need its order-extension property, including freedom to order incomparable classes. Here is the argument. Order all partial order extensions of by inclusion. The union of a chain of extensions is again a partial order: any finite list of comparisons needed to check an axiom occurs together in one member of the chain. Zorn's lemma therefore supplies a maximal extension. If two classes remain incomparable, adjoin and take the transitive closure of a relation. The only possible new comparisons have the form . A cycle would require a previously existing path , contradicting incomparability. The enlarged relation is still a partial order, contradicting maximality. Consequently the maximal extension is a total order. This also proves the Szpilrajn extension theorem used here.
Lift such a total order to the original bundles by comparing their equivalence classes. The lifted preference relation is complete and transitive, contains , and preserves its strict preference: if , their distinct classes satisfy , and antisymmetry of the extended order prevents the reverse comparison. In particular, the class is nonempty and .
For the reverse inclusion, take a pair with . If , then , so every member of strictly ranks above and excludes . If neither comparison holds, their classes are incomparable. First adjoin , which creates no cycle by the preceding argument, and then extend to a total order. Its lift belongs to and again excludes . Thus every pair outside is outside at least one member of , provingThe intersection proof is an order-theoretic fact about any preorder. The congruence axiom additionally ensures exact rationalization of the observed demand correspondence: every chosen bundle weakly outranks every affordable bundle, while an affordable unchosen bundle is strictly worse by part (b). Hence each completion's budget-maximizing set is exactly the observed chosen set.