Chapter 12 Uncertainty
Chapter 12 Uncertainty
Utilities and probabilities. Expected utility functions,or von Neumann-Morgenstern utility functions. They are indifferent up to any positive affine transformation. (affine transformation:y a bx)
Utilities and probabilities. ⚫Expected utility functions, or von Neumann-Morgenstern utility functions. ⚫They are indifferent up to ⚫any positive affine transformation. ⚫(affine transformation: y = a + bx)
oRisk aversion and risk loving $ Concave ys convex utility. The second derivatives
⚫Risk aversion and risk loving. Concave vs convex utility. The second derivatives. $ $ U U
Chapter 14 Consumer's surplus
Chapter 14 Consumer’s surplus
Net Surplus 消费者得益 总收益 56 3 Consumers'Surplus p246
Net Surplus 1 2 3 4 5 6 p r1 r2 r3 r4 r5 r6 Consumers’ Surplus p246 消费者得益 总收益
Producer's surplus p255 Producer's surplus P* Supply curve ∩米
Producer’s surplus p255 Producer’s surplus Supply curve Q P* Q* P
Change in producer's surplus D Supply curve
Q Supply curve Change in producer’s surplus R T Q’ Q’’ P P’’ P’
The water-diamond paradox Pd Pw
The water-diamond paradox Pd Pw Q
Calculating gains and losses B Change in'consumers'surplus
Calculating gains and losses Change in consumers’ surplus B T