Two utility functions with the same marginal rate of substitution represent the same preferences.
Is it true that two utility functions with the same marginal rate of substitution represent the same preferences?
This is a standard microeconomic definition regarding ordinal utility theory where indifference curves represent identical preference orderings; no citation is needed.
Verdict: COMMON KNOWLEDGE · 0 sources for, 0 against · Last checked
The claim states a fundamental definition in consumer choice theory: if two utility functions generate the same marginal rate of substitution everywhere (i.e., identical indifference curves), they represent the exact same ordinal preferences (related by a monotonic transformation). This is a textbook mathematical property and foundational knowledge in economics, rendering external empirical citations unnecessary.
What does the evidence say?
The claim states a fundamental definition in consumer choice theory: if two utility functions generate the same marginal rate of substitution everywhere (i.e., identical indifference curves), they represent the exact same ordinal preferences (related by a monotonic transformation). This is a textbook mathematical property and foundational knowledge in economics, rendering external empirical citations unnecessary.
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