Ordinal Utility Function

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An Ordinal Utility Function is a subjective utility function that is a relative function.



References

2015

  • (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/ordinal_utility Retrieved:2015-4-4.
    • Ordinal utility theory states that while the utility of a particular good or service cannot be measured using a numerical scale bearing economic meaning in and of itself, pairs of alternative bundles (combinations) of goods can be ordered such that one is considered by an individual to be worse than, equal to, or better than the other. This contrasts with cardinal utility theory, which generally treats utility as something whose numerical value is meaningful in its own right.

      The concept was first introduced by Pareto in 1906.

1960