For me this seems more useful as a modus tollens: economists generally treat utility functions as isoelastic[1], which implies that opportunities are Pareto-distributed.
But it’s also useful as a sanity check: it’s intuitive to me that utility is isoelastic, and also that opportunities are Pareto-distributed, so it’s nice that these two intuitions are consistent with each other.
[1] Although this might be more out of convenience than anything else, since isoelastic utility functions have some nice mathematical properties.
For me this seems more useful as a modus tollens: economists generally treat utility functions as isoelastic[1], which implies that opportunities are Pareto-distributed.
But it’s also useful as a sanity check: it’s intuitive to me that utility is isoelastic, and also that opportunities are Pareto-distributed, so it’s nice that these two intuitions are consistent with each other.
[1] Although this might be more out of convenience than anything else, since isoelastic utility functions have some nice mathematical properties.