Utility theory in consumption?
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The utility theory in consumption is a fundamental framework in economic science that studies consumer behavior. However, it has faced criticism and attempts to supplement or improve it. One alternative is to view consumer behavior in the same way as producer behavior, rather than dividing economic agents into consumers and producers . Another approach is the inverse approach to utility theory, where instead of specifying a utility function and deriving actions, the actions of the agent are observed to derive a utility function. This approach has been explored in both deterministic and stochastic settings, revealing that there are infinitely many utility functions generating a given consumption pattern . Additionally, important characteristics of the agent, such as risk attitudes, can be deduced directly from their consumption and investment choices .
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6 Citations | The paper discusses the problem of deriving the optimal resource usage amount that maximizes a profit-cost-based utility function in IoT systems. It does not specifically mention "utility theory in consumption." |
| The paper discusses Gossen's laws of utility in consumption, including the law of decreasing marginal utility and the law of equalizing marginal utility per monetary unit. | |
Open access•Posted Content | The paper discusses an inverse approach to utility theory in consumption and investment problems, where the authors observe agents' actions and try to derive a utility function that would explain their optimal behavior. |
| The paper discusses the criticism and need for amendments in the utility theory of consumer behavior, but it does not provide a detailed explanation of the utility theory in consumption. | |
| The paper discusses an inverse approach to utility theory, where the authors observe agents' consumption and investment strategies to infer a utility function. |
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