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Results tagged with utility
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user 2759
Utility, or usefulness, is the (perceived) ability of something to satisfy needs or wants.
0
votes
1
answer
194
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Does the duality of utility maximization and cost minimization hold in practice?
I recently learned about the relationship between utilization maximization and cost minimization.
Are there studies on whether this duality holds in real life?
Any information on this topic for a b …
CommunityBot
- 1
7
votes
1
answer
637
views
Selecting the best utility function for households
I have little to no background in micro, but I'm learning about utility functions.
It seems that there are many forms of utility functions for households. … Does the selection of a utility function depend on the context and analysis at hand? …
6
votes
2
answers
2k
views
Why do so many models assume homothetic preferences?
...when Engels Law, backed by a good amount empirical evidence, demonstrates that overall consumer preferences are not homothetic.
See for example, Jorgenson (1997)
- 29.7k