SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Austrian Economics, a lens on everyday reality
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Don Lloyd who wrote (278)11/11/2003 12:50:29 AM
From: gpowell   of 445
 
Your observations are correct and anticipated in one of my upstream paragraphs.

This marginal value determination is subjective and dynamic, which does not easily result in tractable quantitative analysis. The concept of utility functions enables comparison of different states by defining a preference relation as continuous when small changes in a particular good result in a small change in the preference level. Thus, any continuous preference can be represented by a continuous function known as a utility function. Utility functions are convenient constructs, however it should be emphasized that, except in special cases, utility functions may not be representative of the decision maker’s value determination.

I delve into the this concept only because it will yield insights downstream.

As far as money.... I thought you might bring this up. The decision to forgo consumption, current or future, is one of the vectors in the set of all choices. This set spans all intertemporal choices.

I thought "consumption bundle" might confuse. So to be clear - a decision to consume zero goods in order to retain X dollars, for any reason - is still a consumption bundle - it has to be - because it is contained in the set of all possible choices.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News