Why is utility function concave

You can also search for this author in PubMed Google Scholar. Correspondence to Martin M. Reprints and Permissions. Monti, M. A note on concave utility functions.

Download citation. Received : 29 June Accepted : 05 October Issue Date : June Anyone you share the following link with will be able to read this content:. Sorry, a shareable link is not currently available for this article. Provided by the Springer Nature SharedIt content-sharing initiative. Skip to main content. Please feel free to reverse my edit if I've misunderstood. Add a comment.

Active Oldest Votes. Improve this answer. But as an explanation of why concave utility functions are usually concave it is surely wrong - for that we need evidence from behaviour, eg of diminishing marginal rates of substitution. In that case, this is indeed the correct answer. Could you update your original question above to make that a bit more clear for future readers? Of course, that is a distinct question from whether concavity is a good assumption in the first place. One problem I have with LBogaardt comment is that utility functions express the same preferences up to a monotonic transformation.

Show 1 more comment. LBogaardt LBogaardt 4 4 bronze badges. I kept waiting for it to get better, figuring it must with the link text you used. But it didn't I got this impression from the rebuttal by Doctor et al. Just as unsurprisingly, his idea happens to be neither original nor very influential as it misses the target.

But I am open to other perspectives preferably with references. The fact that he refers to Peters just happens to make them stronger. Try Doctor et al. Perhaps your opinion of Peters will change after that. Consider opening another one if you would like to discuss Peters' critique on the "direct" non-meta level; I would be curious to see what the community thinks about it. Show 10 more comments. Sign up or log in Sign up using Google. Sign up using Facebook. Sign up using Email and Password.

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