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On Utility

My utility is the sum of my individual Utility (Uc (C is for Chmel)) and Ui s, i being other individuals who are in my life. The utility function would kinda look like this:

Ut (total utlity) = Uc + Sum ( a(ci) u(i))

a(ci) is how much c values i's utility.

I compartmentalise is into several broad categories: strangers, friends, and close friends.

My utility function probably looks like this:

Ut = Uc + 0.3 U(stranger) + 0.6 U(friends) + 0.8 U(close friends)

Note that all of the a (which are supposed to take on numerical values) are lower than 1. It means that for a stranger to feel 1 unit of happiness, I'm willing to give up up to 0.3 units of happiness.
(e.g. buying overprices tissue from the handicapped).

U(stranger) also has a residue term. Because even though I don't gain that much utility from being nice to people I don't know, this utility lasts for quite some time and would make me happy throughout the day. Probz can model it using an MA process?

The value of a changes as well. like when I'm in a dota match/pms, all the "a"s will just shrivel up into almost 0. (i.e. I don't give a shit about your happiness just get out of my room, now!)
But that's ok cause I'll make it up to them when I'm done.


Once in a while, someone special appears and adds another term U(special person) in.

Special person is special because a(cs) is > 1.


Ut = Uc + 0.3 U(stranger) + 0.6 U(friends) + 0.8 U(close friends) +0.2U(cats) + 2.5 U(special person)


This means that to maximize Ut, the optimal thing to do is to concentrate on maximizing Usp

Max Usp = Max Ut = happiness!!!!!

Which is to say that I'm willing to travel for 1 h so that I can reduce your travelling time by say 30 min. That's not very economical is it? But it is! Due to the fact that a(cs)>1. I'm not doing it irrationally. You call it unconditional love but in fact, it's the most selfish thing I can do for myself.

a(cs) also happens to co-relate to a(sc) so I think an ideal relationship is when we don't care about our individual utility (the Uc component) and try, instead to increase each other's happiness. Because then, total utility will be the socially optimal. All these by being selfish individuals trying to make a living.

That's pretty beautiful isn't it? ahh, the wonders of econs.

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