Contour set explained
In mathematics, contour sets generalize and formalize the everyday notions of
- everything superior to something
- everything superior or equivalent to something
- everything inferior to something
- everything inferior or equivalent to something.
Formal definitions
\succcurlyeq~\subseteq~X2
and an element
of
The upper contour set of
is the set of all
that are related to
:
\left\{y~\backepsilon~y\succcurlyeqx\right\}
The lower contour set of
is the set of all
such that
is related to them:
\left\{y~\backepsilon~x\succcurlyeqy\right\}
The strict upper contour set of
is the set of all
that are related to
without
being
in this way related to any of them:
\left\{y~\backepsilon~(y\succcurlyeqx)\landlnot(x\succcurlyeqy)\right\}
The strict lower contour set of
is the set of all
such that
is related to them without any of them being
in this way related to
:
\left\{y~\backepsilon~(x\succcurlyeqy)\landlnot(y\succcurlyeqx)\right\}
The formal expressions of the last two may be simplified if we have defined
\succ~=~\left\{\left(a,b\right)~\backepsilon~\left(a\succcurlyeqb\right)\landlnot(b\succcurlyeqa)\right\}
so that
is related to
but
is
not related to
, in which case the strict upper contour set of
is
\left\{y~\backepsilon~y\succx\right\}
and the strict lower contour set of
is
\left\{y~\backepsilon~x\succy\right\}
Contour sets of a function
considered in terms of relation
, reference to the contour sets of the function is implicitly to the contour sets of the implied relation
(a\succcurlyeqb)~\Leftarrow~[f(a)\trianglerightf(b)]
Examples
Arithmetic
, and the relation
. Then
would be the set of numbers that were
greater than or equal to
,
- the strict upper contour set of
would be the set of numbers that were
greater than
,
would be the set of numbers that were
less than or equal to
, and
- the strict lower contour set of
would be the set of numbers that were
less than
.
Consider, more generally, the relation
(a\succcurlyeqb)~\Leftarrow~[f(a)\gef(b)]
Then
would be the set of all
such that
,
- the strict upper contour set of
would be the set of all
such that
,
would be the set of all
such that
, and
- the strict lower contour set of
would be the set of all
such that
.
It would be technically possible to define contour sets in terms of the relation
(a\succcurlyeqb)~\Leftarrow~[f(a)\lef(b)]
though such definitions would tend to confound ready understanding.
In the case of a real-valued function
(whose arguments might or might not be themselves real numbers), reference to the contour sets of the function is implicitly to the contour sets of the relation
(a\succcurlyeqb)~\Leftarrow~[f(a)\gef(b)]
Note that the arguments to
might be
vectors, and that the
notation used might instead be
[(a1,a2,\ldots)\succcurlyeq(b1,b2,\ldots)]~\Leftarrow~[f(a1,a2,\ldots)\gef(b1,b2,\ldots)]
Economics
In economics, the set
could be interpreted as a set of
goods and services or of possible
outcomes, the relation
as
strict preference, and the relationship
as
weak preference. Then
- the upper contour set, or better set,[1] of
would be the set of all goods, services, or outcomes that were
at least as desired as
,
- the strict upper contour set of
would be the set of all goods, services, or outcomes that were
more desired than
,
- the lower contour set, or worse set, of
would be the set of all goods, services, or outcomes that were
no more desired than
, and
- the strict lower contour set of
would be the set of all goods, services, or outcomes that were
less desired than
.
Such preferences might be captured by a utility function
, in which case
would be the set of all
such that
,
- the strict upper contour set of
would be the set of all
such that
,
would be the set of all
such that
, and
- the strict lower contour set of
would be the set of all
such that
.
Complementarity
On the assumption that
is a
total ordering of
, the
complement of the upper contour set is the strict lower contour set.
X2\backslash\left\{y~\backepsilon~y\succcurlyeqx\right\}=\left\{y~\backepsilon~x\succy\right\}
X2\backslash\left\{y~\backepsilon~x\succy\right\}=\left\{y~\backepsilon~y\succcurlyeqx\right\}
and the complement of the strict upper contour set is the lower contour set.
X2\backslash\left\{y~\backepsilon~y\succx\right\}=\left\{y~\backepsilon~x\succcurlyeqy\right\}
X2\backslash\left\{y~\backepsilon~x\succcurlyeqy\right\}=\left\{y~\backepsilon~y\succx\right\}
See also
References
- Book: Robert P. Gilles. Economic Exchange and Social Organization: The Edgeworthian Foundations of General Equilibrium Theory. Springer. 1996. 35. 9780792342007.
Bibliography
- Andreu Mas-Colell, Michael D. Whinston, and Jerry R. Green, Microeconomic Theory, p43. (cloth) (paper)