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Why transforming utility function will not change decision making process

W

wzlee12

Member
Hi guys!

It has been a long time! May I ask why adding a constant to a utility function, or multiplying it by a constant will not affect the decision making process?

I know this statement is in Chapter 2, and I came across a proof from this file in page 9, but I still do not get the logic.

http://home.uchicago.edu/rmyerson/teaching/util206.pdf

Can someone help me?

Really thanks a lot! :D

Regards,
Lee Wei Zhe.
 
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