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But that's part of the problem: utility isn't observable so it's actually very difficult to refute the model. Unless of course you posit a specific functional
by soVeryTired 9y ago
But that's part of the problem: utility isn't observable so it's actually very difficult to refute the model.
Unless of course you posit a specific functional form for the utility function. Then you'll just have lots of trouble fitting any data you collect.
- jljljl 9y agoI don’t think economists believe there is a specific functional form for the utility function (although it often has certain properies). It’s more just a useful concept for representing customer preferences.