Chapter Four Utility. Preferences - A Reminder u x y: x is preferred strictly to y. x y: x and y are equally preferred. u x y: x is preferred at least.
Chapter Four Utility. 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’)
Chapter Four Utility. Utility Functions u A preference relation that is complete, reflexive, transitive and continuous can be represented by a continuous.
Utility. Utility Functions u Utility is a concept used by economists to describe consumer preferences. u Utility function is a function that assigns a.
L03 Utility. Big picture u Behavioral Postulate: A decisionmaker chooses its most preferred alternative from the set of affordable alternatives. u Budget.
