Non-standard concave utility functions (Q1184842): Difference between revisions

It is well known that every real concave utility function defined on a convex subset of \(\mathbb{R}^ n\) induces a concave preference relation and that the converse is false. The author shows that under reasonable assumptions the converse is true if the utility function is allowed to take values in the nonstandard reals, \(^*\mathbb{R}\). The first proof given in this paper is a straightforward compactness argument (every set of sentences all of whose finite subsets is consistent, is consistent) similar to enlargement or saturation arguments. The author then gives a second argument based on the ultrapower construction of \(^*\mathbb{R}\) which some readers may find more tangible. This second argument is used to study the concept of least concavity.