The Maxwell School
Syracuse University
Syracuse University
Bundle | J | B | Rank | J*B | J*J+B |
1 | 1 | 1 | worst | 1 | 2 |
2 | 2 | 1 | second | 2 | 5 |
3 | 1 | 2 | third | 2 | 3 |
4 | 3 | 1 | best | 3 | 10 |
The first utility function is wrong: it assigns the same value to bundles 2 and 3 even though the individual says that bundle 2 is better than bundle 3. The second utility function works: it ranks the bundles the same way the individual did.