AGED 260 Lecture Notes - Lecture 2: Utility
15 Dec 2017
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It is a forerunner to remm and maintains similar structure but focuses only on. Money , whereas people are motivated by many other things (utility: the nature of man (remm (resourceful, evaluator, maximizer, model) / utility theory, each individual is resourceful, every individual is an evaluator b. i. We make substitutions (trade-offs), which are transitive (ordered: each individual"s wants are unlimited, each individual is a maximizer. To design effective performance measurement and control systems, we need to understand individual"s desires, preferences, and self-interest.
