Sorry if this is not the place to ask, I'm new here. I'm studying economy but I'm struggling to understand the Cobb-Douglas utility function.
If we've one such that xt is consumption in period t, and α and k are parameters such that 0 < α < 1 and k ≥ 0:
U(x1,x2) = α ln (x1-k) + (1-α) ln (x2-k)
What are α and k? Is α the impatience of the consumer or is it the proportion of consumption between two periods? Is k the capital or saving?
I'm using Mass Colell's book as a guide, but I can't find an explanation there and neither on the internet. If anyone could refer me to a book on this topic I'd appreciate it a lot. I only see information about the production function, not the utility one.
Thank you very much