[北大微观济学课件]ch4 Utility.pptVIP

Chapter Four Utility 效用 Structure Utility function (效用函数） Definition Monotonic transformation （单调转换） Examples of utility functions and their indifference curves Marginal utility （边际效用） Marginal rate of substitution 边际替代率 MRS after monotonic transformation 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’) U(x”) x’ ~ x” U(x’) = U(x”). Utility Functions Utility is an ordinal (i.e. ordering) concept. [序数效用] E.g. if U(x) = 6 and U(y) = 2 then