Use function is in the political economy a frequently selected modelling of the preferences of individual restaurant subjects. Fundamental acceptance of the concept is that the participant is seen as rational Nutzenmaximierer, which strives for it, to select from the quantity it the available of alternatives from it If preferences are represented by use functions, then this that an individual makes those decisions, means for it -- given the restrictions, to which its acting is subject -- the greatest possible use expects.

The concept of the use theory is used thereby both in the and in the If it concerns to explain the behavior of individual restaurant subjects in the in the the preferences of politico-economic decision makers are represented by use functions.

Use theory in the

In the micro-economic theory one assumes individuals have preferences over them potenziell the available the selection alternatives (e.g. consumer goods bundles). Such preferences (those very generally to be to be able) can mathematical be represented as binary relations. This relation arranges ever two alternatives A and B the statements "A will from the individual at least as highly estimated as B", "B becomes from the individual at least so highly estimated A", or "A and B are from view of the individual not comparably" too.

A frequently met acceptance is that preferences are orders, i.e. that them at the basis lying binary relations completely (there are no Nichtvergleichbarkeiten of alternatives), reflexiv (each alternative becomes at least as highly estimated as it) and are transitiv (if A of the individual at least as highly estimated will as B and B at least as highly estimated becomes as C, then A becomes also at least as highly estimated as C ").

If a preference order over an alternative quantity exists, then it can be presented by a reellwertige function with the following interpretation: An alternative A is exactly then well estimated at least as as an alternative B, if the value of the function for A is not smaller than the value of the function for B. this function is called then use function. It is a comfortable mathematical illustration of individual preferences.

Of special analytic importance is for (arbitrary) an alternative A the quantity of all alternatives, which are at least as well estimated as A. this quantity are called good quantity of A. your edge, i.e. the quantity of all alternatives, which are estimated of an individual as equivalent to A, is called Indifferenzmenge to A. with representation of the preferences by a use function donates all elements of the Indifferenzmenge to A the same use as A. Graphisch the Indifferenzmenge to an alternative as Indifferenzkurve is represented; contentwise one can speak also from a Indifferenzkurve to a certain use level (instead of to an alternative).

In the micro-economic theory of the consumer goods oh question (household theory) (direct) the use function indicates the use level, which an individual consumer reaches by the consumption of certain goods quantities:

u=U (C_1, C_2, \ ldots, C_n).

U designates the use level, C_i the consumed quantities of the individual goods and n the number of consumer goods. Since as goods area the n-dimensional rellen numbers are often modelled, one often subordinates that U is constantly differentiable.

A Indifferenzkurve to the use level \ without u is the quantity of all consumer goods bundles (C_1, C_2, \ ldots, C_n), to which applies: U (C_1, C_2, \ ldots, C_n) = \ bar and.

Marginal utility

The first derivative of the use function after the quantity one of the consumer goods \ frac {\ partial U} {\ partial C_i} is called also marginal utility of this property. Colloquially answer the marginal utility the question, how much a further unit of the property i would donate additional use.

A marginal utility of 0 means that for this property saturation occurred.

General acceptance

At normal goods one often assumes that that additional consumption donates in principle a higher use, even if the quantity already consumed is very large. That is, that the use function in each of its arguments rises strictly monotonous and/or that the marginal utility also for large C_i is positive.

In the traditional use theory one subordinates frequently that the use gain decreases by the consumption of an additional unit of a property with the height of the quantity already consumed this property, as this is already determined in the first gossenschen law. One speaks thereby of a removing marginal utility and/or a concave use function. This acceptance is generally unnecessary. As acceptance generally only the quasi-concavity of the use function (removing border rate of the substitution between ever two goods is needed; convex good quantities and/or Indifferenzkurven).

Indirect use function

The indirect use function (V) indicates the use level, which a consumer can reach with a certain income height and with certain consumer goods prices maximally:

V (Y, P_1, P_2, \ ldots, P_n) = \ max \ {U (C_1, \ ldots, C_n) | \ sum P_i C_i \ leq Y \}.

Y designates the income of the consumer and P_i the price of the Konsumgutes i. of the indirect use function is the basis (here in connection with the consumer goods oh question) the idea the fact that individuals act use-maximizing, which is called from them the available the alternatives (limits here by the income) them best appearing selects.

Inter+temp-oral use function

An inter+temp-oral use function illustrates preferences over consumer alternatives, which at different times for the order. With their it can be explained among other things why and in which height of humans to save or credits take up.

In agreement with empirically observable behavior one often assumes with inter+temp-oral preferences individuals prefer in relation to a timenear consumption time-further consumption in same height; one speaks here of a positive time preference. In use functions this positive time preference is illustrated frequently by discount factors, whereby one often proceeds simplifying from a constant time preference rate also with income changes. Probably the present consumption has a higher use however with lower incomes, and with Pro-Kopf-Einkommen at the poverty border the time preference rate is accordingly very high.

The time preference rate of a restaurant subject is the private time preference rate, while a society social time preference rate one calls.

The concepts of the good quantity or the Indifferenzkurve can be used similarly.

Expectation use function

The expectation use function shows the use of risky alternatives. Here it is the basis (typically linear) a use function over the individual alternatives, over which the expectancy value is then formed concerning the probability distribution over the alternative quantity.

Macro-economic use theory

In the macro-economic connection overall economic use functions use find, in order to measure the Vorteilhaftigkeit of certain political and economic developments for the overall economic development. Deratige of concepts, which are based implicitly on an aggregation of individual preferences (must), are usually arbitrarily.

In the the concept is used likewise, in order to model the behavior of politico-economic participants. In this context in the context of the Public Choice theory for example use functions for re-election-oriented politicians are provided. Therefore politicians will select that political alternative, which is useful to its re-election chances at most.

Articles in category "Use function"

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