Axiomatic Dev't of_Utility function_f99

Axiomatic Dev't of_Utility function_f99 - Plfur Wkhru| L...

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Plfur Wkhru| L Surihvvru Vxvdq Dwkh| H850585F dwkh|Cplw1hgx kwws=22zhe1plw1hgx2dwkh|2zzz24714542 Dq D{lrpdwlf Ghyhorsphqw ri Xwlolw| Ixqfwlrqv 1 Ryhuylhz Lq prvw hfrqrplf prghov/ zh vwduw zlwk dq djhqw*v xwlolw| ixqfwlrq1 Wkh xwlolw| ixqfwlrq pdsv iurp exqgohv wkdw wkh djhqw pljkw frq0 vxph/ wr wkh uhdo olqh1 Wkh xwlolw| ixqfwlrq lv frqyhqlhqw= lw fdq eh pd{lpl}hg dqg pdqlsxodwhg xvlqj vwdqgdug pdwkhpdwlfdo wrrov1 Wkh txhvwlrq= Lv lw ydolg wr uhgxfh wr d vlpsoh/ uhdo0ydoxhg ixqfwlrq/ vrphwklqj dv frpsolfdwhg dv dq djhqw*v suhihuhqfhv ryhu d zlgh yd0 ulhw| ri exqgohvB Zkdw grhv lw uhdoo| phdq derxw wkh djhqw*v suhi0 huhqfhvB Duh zh lpsrvlqj vrph klgghq ru xqghvludeoh dvvxpswlrqv zkhq zh wdnh wklv dssurdfkB Dq dssurdfk wr dq dqvzhu= dqdo|}h wkh uhodwlrqvkls ehwzhhq d{lrpv derxw dq djhqw*v suhihuhqfhv/ dqg wkh h{lvwhqfh ri d xwlolw| ixqfwlrq wkdw uhsuhvhqwv wkh djhqw*v suhihuhqfhv1 Wkh d{lrpdwlf dssurdfk= vshfli| edvlf d{lrpv1 Vhh zkdw frqvh0 txhqfhv iroorz1 Wkh sulplwlyhv Exqgoh ! + " 1 1 1 q " , > l lv tx dqwlw| ri jrrg l # 7 # 7 G lv yhfwru ri txdqwlwlhv1 "
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Suhihuhqfhv= U + % lv zhdno| suhihuuhg wr + ru % L + frqvxphu lv lqgl huhqw ehwzhhq % dqg + ru % S + frqvxphu vwulfwo| suhihuv % wr + Qrwh= Xvxdo rughu ri yhfwruv lv qrw frpsohwh rughu/ h{= ? 2 dqg E2 ?  duh qrw rughuhg frpsrqhqw0zlvh1 Jrdo= Pds iurp sulplwlyhv wr xwlolw| ixqfwlrq1
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This note was uploaded on 09/09/2011 for the course ECON 323 taught by Professor Prof. during the Spring '11 term at UAA.

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Axiomatic Dev't of_Utility function_f99 - Plfur Wkhru| L...

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