Micro_II_03_偏好与效用 - Chapter 3 PREFERENCES AND...

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Chapter 3 { , N z à PREFERENCES AND UTILITY P O Y } T H u ( 1
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Axioms of Rational Choice t ٠ Р Completeness if A and B are any two situations, an individual can always specify exactly one of these possibilities: A B a ý N ) A is preferred to B A O Ž B B is preferred to A B O Ž A A and B are equally attractive A N B T 2
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Axioms of Rational Choice t ٠ Р Transitivity ' if A is preferred to B, and B is preferred to C, then A is preferred to C A O Ž B ÿ B O Ž C ÿ H A O Ž C assumes that the individual’s choices are internally consistent 3
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Axioms of Rational Choice t ٠ Р Continuity if A is preferred to B, then situations suitably “close to” A must also be preferred to B A O Ž B ÿ ɟ S A N [ Ž B used to analyze individuals’ responses to relatively small changes in income and prices u ٧ < \ Т 4
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Utility e H u ( Given these assumptions, it is possible to show that people are able to rank in order all possible situations from least desirable to most ~ [ N G ÿ b N ì g S ï ý f ÿ N N ì ý Y b @ g S ï ý v Я Q c q g N g T a R 0 g T a L c Economists call this ranking utility ~ m N [ f [ \ k d c ð N : e H u ( Utility is seen as a way to describe preference e H u ( N : c P O Y } v e l if A is preferred to B, then the utility assigned to A exceeds the utility assigned to B Y A O N Ž B ÿ N H A v e H u ( B v e H u ( U (A) > U (B) 5
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Utility e H u ( Utility rankings are ordinal in nature e H u ( c ( g , ( N f / ^ e p v they record the relative desirability of commodity bundles b @ _ U v f / U F T v ё ø [ ù T a z ^ Because utility measures are not unique, it makes no sense to consider how much more utility is gained from A than from B V : e H u ( a ^ v N f / U / N v ÿ b @ N Q A k B Y Y \ e H u ( l g a N I It is also impossible to compare utilities between people T h 7 ÿ k N T N v e H u ( N _ f / N S ï ý v 6
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Utility e H u ( Utility is affected by the consumption of physical commodities, psychological attitudes, peer group pressures, personal experiences, and the general cultural environment e H u ( S [ i U F T v m 9 0 _ t ` ^ 0 T | {  O S S 0 N * N ~ S T t O S v e s X Ю q T Economists generally devote attention to quantifiable options while holding constant the other things that affect utility ~ m N [ f [ N , Q s l ï N S v ю b é ÿ b v N _ q T e H u ( v Х w P Z N S ceteris paribus assumption Q v N g a N ö N S P G 7
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Utility e H u (
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  • Spring '16
  • Fuxiang Wu, Yu Wang
  • Utility, indifference curves

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