 |
Preferences and Utility - Basic Review and Examples
Example Say we have only one good, and our utility function is u(x) = 4x2. Now de ne v= (u(x))2, g= 10 ln(u(x)), and h= p u(x) (all of which are monotonically increasing transformations). We can see a few example values in the table below. Note how the ac
njsanders.people.wm.edu |
 |