Search type Search syntax
Tags [tag]
Exact "words here"
Author user:1234
user:me (yours)
Score score:3 (3+)
score:0 (none)
Answers answers:3 (3+)
answers:0 (none)
isaccepted:yes
hasaccepted:no
inquestion:1234
Views views:250
Sections title:apples
body:"apples oranges"
URL url:"*.example.com"
Favorites infavorites:mine
infavorites:1234
Status closed:yes
duplicate:no
migrated:no
wiki:no
Types is:question
is:answer
Exclude -[tag]
-apples
For more details on advanced search visit our help page
Results tagged with Search options user 5635

Utility, or usefulness, is the (perceived) ability of something to satisfy needs or wants.

2
votes
Here are some references for a somewhat unsatisfying picture. Rubinstein's lecture notes in microeconomic theory discuss a necessary condition for differentiability. Debreu provided necessary and su …
answered Sep 18 '17 by HRSE
5
votes
3answers
there exists a continuous! utility representation $u:V_1\times,...,\times V_n\rightarrow \mathbb{R}$. However, continuity $\neq$ differentiability. Thus, I am curious under which conditions there even … exists a differentiable utility function. My first idea would be to at least restrict the product space to $\mathbb{R}^n$, but there may be counterexamples. For example, if $n=1$ and $u$ is the …
asked Nov 14 '15 by HRSE
4
votes
Let me just add some observations which are too long for a comment. It seems that the description of demand with linear utility as a step function seems not quite correct. In fact, what we get … indirect utility function, the Hicksian demand and the expenditure function in the graph. Aside from the mentioned CES, quasilinear and translog utility, I would add the isoelastic utility $u(x,y)=x^a+y …
answered Dec 1 '15 by HRSE
2
votes
lovely leisure can be with a yacht.) So let's take a standard quasilinear utility function and adjust it to $u=\ln c+(1-l\cdot c)$. Inserting the budget constraint yields: $u=\ln (w \cdot l) + (1-w …
answered Sep 28 '15 by HRSE
7
votes
Here a short answer: Homothetic, identical preferences have the modelling advantage that the distribution of income across individuals does not matter for aggregate demand. That is, if you want to stu …
answered Feb 12 '16 by HRSE
1
vote
It seems the utility function is not only cardinal here, but even defined on a ratio scale. Consider two outcomes with utilities 1/4 and 3/4. Clearly, we can apply the affine transformation: $v=v*2 … utility. One way to do this is to give an interpretation to the natural 0 utility level. Without this specification the entropy is meaningless. …
answered Oct 1 '15 by HRSE
7
votes
1answer
Suppose we want to estimate for many goods in the economy (or classifications thereof) the preferences of each household for these goods. We may want to restrict the analysis to specific utility … classes, e.g. translog or CES utility. Naturally, we can not obtain the utility function but only the value function. To my knowledge the Nielsen Datasets from U Chicago seem to provide such a possibility, but have highly restrictive access. What are good alternatives? …
asked Sep 29 '15 by HRSE