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.
Chapter 4 Utility
Chapter Four
Chapter 4 Utility. 2 Introduction Last chapter we talk about preference, describing the ordering of what a consumer prefers. For a more convenient mathematical.
Ch4 Utility
