utility-function, marginal-utilityLet me give you couple of examples.
You’re at a dinner and you order something. You could say:
The similar grading can be made for bad food.
The next example would be if you won the prize. We could look at the connection between the prize value and the satisfaction that you experience.
My assumption is that quality of food vs pleasure would look something like this:
If you increase the quality of food the pleasure would rise fast, you would get to a point where you’d be satisfied that you’ve eaten well, after that there would be dampening of an effect, if you could increase the food quality to infinity, the pleasure would remain constant after one point.
The same goes for wining a prize, if you won 1000$ and if you won a million dollars, the difference between satisfaction you would experience would be much larger then the difference if you won 100million vs 101million dollars.
Has anybody made measurements of similar examples? How would that function look like, would it be linear and then started bending after some critical point. Would it be exponential at the beginning then get saturated after some critical point? Would it look something like tanh, Fermi-Dirac?
What about the bad examples, bad food, paying taxes etc? I assume that it’s not symmetric.
Any differences in group effects? (Nations, sports, business teams etc?)
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