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Results tagged with utility
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user 32748
Utility, or usefulness, is the (perceived) ability of something to satisfy needs or wants.
2
votes
Accepted
Utility function with two goods with declining spending share on one good
Finally, it is easy to verify that the utility function exhibits diminishing marginal utility in both goods. …
- 151
3
votes
Accepted
Non decreasing function for utility transformation
Since $u(x)$ represents $\succsim$, $\succsim$ must be rational. By completeness, $\neg (x\succsim y) \iff x \prec y$. Therefore, the claim that $$v(x) \geq v(y) \iff x\succsim y, \forall x, y$$ is eq …
- 151
0
votes
Why is incidence not included in social welfare maximization?
In other words, money is "indirectly" valued by the indirect utility function $v(p,m)$. … Therefore, as long as the shape of your utility function is determined, how you value the "incidence" (using your language) is determined. …
- 151