Nutzwertfunktionen

Nutzwertfunktionen, also known as utility functions, are mathematical representations used in economics and decision theory to describe an individual's preferences. They assign a numerical value, or utility, to different bundles of goods or outcomes. The higher the numerical value, the more preferred the bundle or outcome is. Nutzwertfunktionen are ordinal, meaning they only rank preferences, not quantify the intensity of those preferences in an absolute sense. For example, if a person prefers apples over bananas, their nutzwertfunktion would assign a higher number to apples than bananas. However, it doesn't specify by how much the person likes apples more.

The core assumption behind nutzwertfunktionen is that individuals are rational and aim to maximize their utility. This principle is central to microeconomic analysis, helping to explain consumer choices and market behavior. By understanding how individuals value different combinations of goods, economists can predict demand and analyze the effects of price changes or policy interventions. Different types of nutzwertfunktionen exist, such as linear, Cobb-Douglas, and Leontief, each reflecting different assumptions about how consumers substitute between goods. The specific form of a nutzwertfunktion can vary significantly between individuals due to differences in tastes, income, and other personal factors.