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Lecture

Topic 2 - Utility and Indifference Curves

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Department
Economics
Course
ECO206Y1
Professor
Loren Brandt
Semester
Fall

Description
Topic 2 Utility and Indifference CurvesSeptember 21 20111029 AMCUtility FunctionUux x x x123nMath representation of preference ordering aXY UxUybXY UxUy numbers in the utility function are ordinal not cardinalFrom the utility function we only know the order of the preference whether X is before Y not the strength of the preference whether the utility of X is 3 times greater than Y These utility functions are only unique to a positive monotonic transformation2eg VUxUX 32UX 5lnUXPositive monotonic transformation is like relabeling of the preferencesIt does n
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