A First Linkage: CP and Bi-Attribute Utility
The basic traditional structure underlying any choice problem in economics can be summarised as follows:
where (x 1, x 2) represents elections for the decision-maker (e.g. commodity-mix in a consumer’s choice problem, vector of outputs in a joint production problem, composition of a portfolio of securities, etc.); Z (x 1, x 2 ) is the utility function for the decision-maker, and T (x 1,x 2 ) = k the opportunity set, trade-off set or feasible frontier (budgetary boundary in consumer theory, transformation curve in joint production theory, efficient frontier in portfolio analysis, etc.).
KeywordsUtility Function Ideal Point Portfolio Selection Efficient Frontier Utility Optimum
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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© Springer Science+Business Media New York 1998