Consider the following two procedures of choice. Explain the procedures and try to persuade the skeptic that they make sense. Determine for each of them whether they are consistent with the rational choice model.
(a) The primitives of the procedure are two functions u,v : X -> R and a number v*: For simplicity, assume u; v are both 1-1. For any given choice problem A; the decision maker chooses the element a* belong to A which maximizes u if v(a*) ≥ v*; and if v(a*) < v he maximizes the function v.
(b) The primitives are two functions u; v : X -> R (both 1-1) and a number u*: For any given choice problem A;the decision-maker chooses the element a* belongs to A which maximizes u if u(a*) ≥ u*; and if u(a*) < u* he maximizes v.