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Outer measure and utility

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Author Info
Voorneveld, Mark () (Dept. of Economics, Stockholm School of Economics)
Weibull, Jörgen W. () (Dept. of Economics, Stockholm School of Economics)

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Abstract

In most economics textbooks there is a gap between the non-existence of utility functions and the existence of continuous utility functions, although upper semi-continuity is sufficient for many purposes. Starting from a simple constructive approach for countable domains and combining this with basic measure theory, we obtain necessary and sufficient conditions for the existence of upper semi-continuous utility functions on a wide class of domains. Although links between utility theory and measure theory have been pointed out before, to the best of our knowledge this is the first time that the present route has been taken.

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File URL: http://swopec.hhs.se/hastef/papers/hastef0704.pdf
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Publisher Info
Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 704.

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Length: 8 pages
Date of creation: 16 Oct 2008
Date of revision: 06 Apr 2009
Handle: RePEc:hhs:hastef:0704

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Related research
Keywords: preferences; utility theory; measure theory; outer measure;

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Find related papers by JEL classification:
C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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  1. Jaffray, Jean-Yves, 1975. "Existence of a Continuous Utility Function: An Elementary Proof," Econometrica, Econometric Society, vol. 43(5-6), pages 981-83, Sept.-Nov. [Downloadable!] (restricted)
  2. Neuefeind, Wilhelm, 1972. "On continuous utility," Journal of Economic Theory, Elsevier, vol. 5(1), pages 174-176, August. [Downloadable!] (restricted)
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This page was last updated on 2009-11-28.


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