《微观经济学》华大学课件 Ch4 Utility.pptVIP

Chapter Four Utility 效用 What Do We Do in This Chapter? We create a mathematical measure of preference in order to advance our analysis. Utility Functions A preference relation that is complete, reflexive, transitive can be represented by a utility function. 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. E.g. if U(x) = 6 and U(y) = 2 then bun