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yelta's Question
Microeconomics
Posted 6 months ago
怎么证明
Proposition 2.9 (Debreu's Theorem). If a continuous function uu represents \succeq, then \succeq is continuous. Conversely, if \succeq is continuous, it has a continuous utility representation. 5{ }^{5}
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Answer from Sia
Posted 6 months ago
Answer
a
Debreu's Theorem states that if a continuous function uu represents a preference relation \succeq, then the preference relation \succeq is continuous. This means that small changes in the consumption bundle lead to small changes in the utility level
b
Conversely, if the preference relation \succeq is continuous, it implies that there exists a continuous utility function uu that can represent it. This is crucial in microeconomic theory as it links preferences and utility in a continuous manner
Answer
Debreu's Theorem connects continuity in preferences and utility representation.
Key Concept
Debreu's Theorem
Explanation
It establishes the relationship between continuous preferences and the existence of a continuous utility function.

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