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Unformatted text preview: X is the set of all conceivable basketball players, and V ( x ) is the height of player x . Note that the statement x % y if V ( x ) V ( y ) always deFnes a preference relation since the relation on < satisFes completeness and transitivity. Even when the description of a preference relation does not involve a numerical evaluation, we are interested in an equivalent numerical representation. We say that the function U : X < represents the preference % if for all x and y X , x % y if and only if U ( x ) U ( y ) . If the function U represents the preference relation % , we refer to it as a utility function and we say that % has a utility representation . It is possible to avoid the notion of a utility representation and to do economics with the notion of preferences. Nevertheless, we usually use utility functions rather than preferences as a means of describing an economic agents attitude toward alternatives, probably...
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This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.
 Fall '10
 aswa
 Utility

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