- Ordinal and cardinal definitions
- Connection to other classes of utility functions
- See also
- References
In economics, a unit demand agent is an agent who wants to buy a single item, which may be of one of different types. A typical example is a buyer who needs a new car. There are many different types of cars, but usually a buyer will choose only one of them, based on the quality and the price.
If there are m different item-types, then a unit-demand valuation function is typically represented by m values 
, with 
representing the subjective value that the agent derives from item 
. If the agent receives a set 
of items, then his total utility is given by:
since he enjoys the most valuable item from and ignores the rest.
Therefore, if the price of item is 
, then a unit-demand buyer will typically want to buy a single item – the item for which the net utility 
is maximized.
Ordinal and cardinal definitions
A unit-demand valuation is formally defined by:
- For a preference relation: for every set
there is a subset 
with cardinality 
, such that 
. - For a utility function: For every set :[1]
Connection to other classes of utility functions
A unit-demand function is an extreme case of a submodular set function.
It is characteristic of items that are pure substitute goods.
See also
- Utility functions on indivisible goods
- Matching (graph theory)
References
- Tofta
- Tofta (disambiguation)
- Tofta (Gotland)
- Toftavatn
- Toft Cricket Club
- Toftegårds Plads
- Tofte Peak
- Tofthagen, Thomas
- TOF/TOF
- Toftoya
- Toftoyna
- Toft, Thomas
- Tofu Beats
- Tofu character
- Tofu Curtain
- Tofu curtain
- Tofu dengaku
- Tofu dreg
- Tofugaura-Kaigan Station
- Tofu pudding meal
- Tofuyo dish
- Tofā Sauni
- Togacantha
- Toga District
- Toga Island