A.1 Utility function | Consumption - Microeconomics
HTML-код
- Опубликовано: 27 окт 2024
- Learn more: www.policonomic...
Versión en español: • A.1 Función de utilida...
This video explains the very basics of consumer's preferences, and how to successfully build and understand a utility function. We start with basic rationality axioms, then we draw a utility function and lastly we introduce the concept of indifference curves.
Related videos:
-Utility maximisation: • A.6 Utility maximisati...
-Consumption duality: • A.8 Consumption dualit...
Related articles:
-Preferences: www.policonomic...
-Utility maximisation: www.policonomic...
Thank you for watching!
www.policonomic...
Learn, and enjoy!
I am just about ready to cry. I wish I would have found your clear explanations before I spent weeks of confusion in my microeconomics class trying to decipher my notes from class.
I wish professors would find videos like these to supplement the books and then spend lectures explaining parts that might not be clear.
Why must every professor recreate the wheel on these kinds of basic concepts. Today is the day after my entire class save one student failed the first exam. I hope you have an entire series on Producer Theory because that is the next third of the class.
Thank you.
Dear Tiffany,
Thank you very much for your kind words! We know how hard it can be to understand some micro subjects. We'll keep on uploading videos.
Thanks for watching!
Your videos are an absolute godsend. Your ability to crystallize what would be an entire chapter of a microeconomics textbook into a 5 minute video is nothing short of brilliant.
This week's featured video: Utility functions. This video explains the very basics of consumer's preferences, and how to successfully build and understand a utility function. We start with basic rationality axioms, then we draw a utility function and lastly we introduce the concept of indifference curves.
A.1 Utility function | Consumption - Microeconomics
Learn, and enjoy!
It's pretty amazing to have the haedcore economic concepts in this very simplistic way.
That was a great video, pls keep on making such videos!
Great video!
Please keep making more
We have a lot more videos which will be uploaded shortly. We are also uploading now the Spanish version of all our videos! 🅿
very helpful! :) Big thumbs up!
Thanks Whatasimpleplan ! More to come really soon!
I doubt about the correctness of the definition of "convexity". It should be the linear combination of A and C is greater or equal to B.
Dear +Will Gu ,
Sadly, you are completely right... There was a typo in the script and we didn't notice. We have know edited out the section with the mistake. The correct definition of convexity is:
For all A, B and C, elements of set X, we have that if A is at least as preferred as C, and B is at least as preferred as C, there is a combination of both A and B that is at least as preferred as C.
We'll upload a new version of this video in the future.
Thanks for the heads up!
Best,
The Policonomics team
thank you so much.
Hello, do you still run the chanel?
Can you plzz state the main functions of utility in points it is very important
great video, thank you!
Thanks YangChinese :D !
We'll be uploading new videos shortly, we hope you'll like those too!
Thanks again,
The Policonomics Team
this video is fantastic
Thank you!
Very helpful thank you very much !!
Very Helpfull!! I have a question, how do you arrive to a utility function, say a utility functio that describes the level of uitlity of every combination of apples and bananas?
@@johnnyjonas564 Understood, but how can you estimate the parameters in real life?
@@johnnyjonas564 thanks!! Funny story, I made the question in highschool, now I am an undergrad econ student and the question has become more relevant
Which program are you using for this video?
Dear ITsOnDahOuSe ,
We use Adobe CS5 programs, mainly Flash and After Effects.
Thanks for watching!
The Policonomics Team
Preference does not seem to me to be continuous ? On what do you base this assumption ? thanks
Hi TheMraptor,
In order for preference theory to be useful mathematically, we need to assume continuity. Continuity simply means that there are no ‘jumps’ in people’s preferences. This allows indifference curves to be differentiated, which is very useful when analysing consumer's preferences. It's used so preferences make sense from a rationality point of view.
Thanks for watching!
*****
thanks, do I understand correctly that what you are sayings .. "We make assumption preferences are continuous so that we can use math" ..
If that is what you are saying, I understood that from the video, my question was not that.
My question if I can rephrase it is : How can you make this assumption, if it does not reflect reality, just so you can use math ?
The purpose should be to base axioms on reality, right ?
I don't want to be obnoxious, just want to know if there is an answer to this question.
thanks
Hi TheMraptor,
We want to approximate our analysis to reality as much as we can. Sometimes, however, actual but intangible things ( such as desires, preferences, or even national accounts) must be guessed or rounded, and used in ways that can help us perform the analysis. Is this a flawless method? Sadly, no. But it's the only way we can analyse economic phenomena without pulling our hair out!
Thanks for watching!
@@Policonomicsmay I have honour to ask for elaboration for how come the continuity of preferences allow the ICs to be differentiable with no need to assume strict quasiconcavity of the utility function? Can't we have a kink there?
The tone in this video sounds very dogmatic (and possible wrong) to me. Words like 'must', 'axiom'. "Transitivity is the second axiom by which consumers are able to order their preferences in a logical way". Is transitivity not just a name for a way how consumers can order? If that's true, the use of the word 'axiom' is really misplaced. There's a difference between axiom and definition. That economic agents are rational should really be the only axiom. Do we always want more of what we like? I don't think so.
@4:15 i didn't understand what she says loan of or something different. is there any one got what she said ?
+Cihat Altindal She said if you have a lower amount of a good than you get more utility per increase of that good than if you already have a lot of that good (in which you'd get a lower amount of utility per increase of that good)
Thank you Josh Peitz
Are there any videos on game theory ? thanks !!
Hi felony077,
At this moment, we have no videos on game theory. However, we plan on uploading more videos after summer, and some of them will be on game theory.
Thanks for watching!
Quasi concave ...wait ...it's French !!! Cocorico !! damn you use french words :')
Also really nice vidéo ! It's as clear as cristal glass, thank you :D
Please do Macroeco
👏🏻💐👑🏆
You have a really weird way of pronouncing some words. Otherwise, I thought this was a fantastic video!
this is such a rude comment lmao