Chapter Four Utility 效用
Chapter Four Utility 效用
What Do We do in This Chapter? We create a mathematical measure of preference in order to advance our analysIS
What Do We Do in This Chapter? We create a mathematical measure of preference in order to advance our analysis
Utility Functions A preference relation that is complete, reflexive, transitive can be represented by a utility function
Utility Functions A preference relation that is complete, reflexive, transitive can be represented by a utility function
Utility functions a utility function U(x represents a preference relation if and only if xxx〈U(x)>ux) Xx U(x)<U(x”) x~x〈Ux)=Ux”)
Utility Functions A utility function U(x) represents a preference relation if and only if: x’ x” U(x’) > U(x”) x’ x” U(x’) < U(x”) x’ ~ x” U(x’) = U(x”). ~ f p p
Utility Functions Utility is an ordinal(i.e. ordering) concept E.g. if U(x)=6 and Uly)=2 then bundle x is strictly preferred to bundle y. But x is not preferred three times as much as is y
Utility Functions Utility is an ordinal (i.e. ordering) concept. E.g. if U(x) = 6 and U(y) = 2 then bundle x is strictly preferred to bundle y. But x is not preferred three times as much as is y