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Utility structure: typical shapes of utility and disutility functions.

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posted on 2010-03-31, 01:46 authored by José-Manuel Rey

The shape of feeling utility U is the standard picture assumed in the social sciences. Utility from effort, represented by −D, increases till it reaches c* but decreases beyond this point. Marginal effort utility is decreasing and vanishes at c*. Thus −D is concave in shape reaching an absolute maximum at c*.

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