Learn Before
  • Using Alternative Utility Functions to Model Different Preferences

Cobb-Douglas Utility Function

The Cobb-Douglas utility function is a specific mathematical form that can be used to represent an individual's preferences, for example as an alternative utility function for Karim. It is given by the formula u(t,c)=tαcβu(t,c) = t^\alpha c^\beta, where the exponents α\alpha and β\beta are positive constants. This function is noted for having convenient mathematical properties, making it common in economic analysis. It is named after the two people who introduced the function to the field of economics.

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CORE Econ

Economics

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Empirical Science

Science

Economy

Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ

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Learn After
  • Simplifying the Marginal Utility of Free Time for a Cobb-Douglas Function

  • Positive Parameters in Cobb-Douglas Function and Positive Marginal Utility

  • Hypothetical Cobb-Douglas Utility Function for Karim (u(t,c)=t2c3u(t,c) = t^2 c^3)

  • Yvonne's Hypothetical Utility Function