Utility functions a utility function U(x represents a preference relation if and only if xxx〈U(x)>ux) Xx U(x)<U(x”) x~x〈Ux)=Ux”)Utility Functions A utility function U(x) represents a preference relation if and only if: x’ x” U(x’) > U(x”) x’ x” U(x’) < U(x”) x’ ~ x” U(x’) = U(x”). ~ f p p