Ordinal Theory

In ordinal approach, utility is measured ordinally, i.e. qualitatively (not quantitatively or numerically). Ordinal theory is based on the assumptions (i) Consumer's choice is reflexive, i.e. consumer prefers one good over other. (ii) Consumer's choice is complete, i.e. she knew his preferences well and her preferences are complete. (iii) consumer's preferences are continuous. (iv) Consumer's choice is non-satiated in all goods, i.e. larger the consumption of a good leads to larger satisfaction or utility, or lower the consumption of a good lower is the satisfaction or utility.  (v) Consumer's choice is such that indifference curve is strictly convex to the origin. (vi) Consumer's choice is selfish and it is not influenced by other consumers.