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!
Regards,
Lee Wei Zhe.
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!
Regards,
Lee Wei Zhe.