utility function

[Monika]

how do we derive utility function from preference relation?

[duck]

Hi Monika.. :)

Some properties have to be imposed on preference relation, then only we can have a well defined representation of a utility function.

[ritu]

hey duck....can you explain the three pref relation-weakly preferred ,indifference and strict preference.....like wot's their sign i kno but i came across certain questions in dse paper which i couldnt answer correctly......so pls if u could clear this concept it wud be really helpful....

[ritu]

hey duck....can you explain the three pref relation-weakly preferred ,indifference and strict preference.....like wot's their sign i kno but i came across certain questions in dse paper which i couldnt answer correctly......so pls if u could clear this concept it wud be really helpful....

[Monika]

ohh...bt i evn hav no idea of what all properties are to b imposed..

[Monika]

k receives no income in period 1 and earns M in period 2. she can borrow ar r. more she consumes in 1st period, less utlility she derives in 2nd period. derive the utility function.

[Monika]

k receives no income in period 1 and earns M in period 2. she can borrow ar r. more she consumes in 1st period, less utlility she derives in 2nd period. derive the utility function.

[duck]

Hi.. :)

@ Ritu:
Weak Prefenrence Relation, R > it means "atleast as good as"
i.e when we say xRy then it means x is atleast as good as y.


Strict preference Relation, P>
xPy => xRy and not yRx
i.e "x is atleast as good as y" but "y is not atleast as good as x".

Indifference Relation, I>
xIy => xRy and yRx
i.e. "x is atleast as good as y" and "y is atleast as good as x"

Post the questions in which you're facing problems. So that we could discuss them.

[duck]

@ Monica:
 
If a preference relation satisfies Ordering (i.e reflexvity, completeness and transitivity)  and continuity then, a preference relation can be replaced by a real valued continuous function.

[Monika]

hey duck..cn u plz help me solve dis question..