第三章 效用理论 - 宁波广播电视大学（The third chapter, utility theory, Ningbo radio and TV University）.docVIP

第三章 效用理论 - 宁波广播电视大学（The third chapter, utility theory, Ningbo radio and TV University） Documents from the network, I collected, finishing, and if there are omissions, errors, but also please correct me! The third chapter is utility theory The main contents of this chapter are: Cardinal utility theory and ordinal utility theory Two, the law of diminishing marginal utility and consumer equilibrium Three, indifference curve and consumer equilibrium Four, the effect analysis of different commodity price changes (substitution effect and income effect) Five, income consumption curve and price consumption curve Cardinal utility theory and ordinal utility theory 1. Implications of utility Utility refers to the degree or degree of satisfaction that a consumer may derive from the consumption of something, or the ability and degree of a commodity to satisfy a persons wants and wants If the consumer has a high degree of satisfaction in the consumption of certain goods, then the utility is large; on the contrary, the satisfaction is low, then the utility is small Utility is a psychological feeling, it is a subjective experience, different from the use of value 2, cardinal utility theory Cardinal view of cardinal utility theory: utility can be represented by cardinal numbers (1, 2, 3), can be compared, and can be summed together For example: people thirsty to drink a cup of tea, feel comfortable, utility evaluation for 10 utility units; then read a newspaper, feeling okay, 5 utility utility evaluation units; therefore, drink a cup of tea is greater than the utility of reading a newspaper at the same time, total utility consumption of these two items are continuous the 15 utility unit The cardinal utility theory uses the marginal utility method 3, ordinal utility theory The basic view of ordinal utility theory: utility is a psychological feeling that can only be expressed in ordinal numbers (first, second,...) and can only be compared For example: thirsty, drink a cup of tea, feel