Definition
Inverting this formula gives the indirect utility function
- ,
where is the amount of income available to the individual and is equivalent to the expenditure in the previous equation. This is what Gorman called “the polar form of the underlying utility function.” Gorman's use of the term polar was in reference to the idea that the indirect utility function can be seen as using polar rather than Cartesian (as in direct utility functions) coordinates to describe the indifference curve. Here, income is analogous to the radius and prices to an angle.
Read more about this topic: Gorman Polar Form
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