utility

(redirected from Utility maximization)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Utility

A power company that owns or operates facilities used for the generation, transmission, or distribution of electric energy, which is regulated at state and federal levels.

Utility

1. In economics, the level satisfaction the person derives from a good or service. Utility is inherently subjective and thus difficult to measure, but it is important in determining how much supply of a product the market can handle without diminishing demand. Historically, it has been thought that one can quantify the utility of each unit, but some economists disagree with this. See also: Austrian school, Law of Diminishing Marginal Utility.

2. A company that provides electricity, water, or gas to customers. These companies are subject to a number of regulations at the local and national levels. They borrow more than most other companies; thus, a decline in utility stocks is often seen as an indicator of a coming rise in interest rates. See also: Dow Jones Utility Average - DJUA.

utility

A business that provides an essential service, generally under government regulation. Electric companies, gas transmission firms, and local telephone companies are utilities.

utility

  1. the satisfaction or pleasure that an individual derives from the CONSUMPTION of a GOOD or SERVICE. See UTIL, CARDINAL UTILITY, ORDINAL UTILITY, MARGINAL UTILITY, TOTAL UTILITY, UTILITY FUNCTION, DIMINISHING MARGINAL UTILITY.
  2. see PUBLIC UTILITY.
References in periodicals archive ?
Motivated by the duality model of TCP/AQM, which is an example of "horizontal" decomposition via dual decomposition; researchers have extended the utility maximization framework to provide a general cross-layer design methodology.
However, it seems clear that utility maximization is only part of the story underlying the actions of Palestinian insurgents and Israeli state officials, not the whole story, as adherents of classical rational-choice theory claim.
33) Indeed, seeking one's preferred policy outcome is a form of utility maximization, but one treated separately for the purpose of this analysis.
optimal path and average utility maximization with and without constrained actions) and recommended algorithms for their satisfaction.
Solving the individual utility maximization problem
a) The individuals solve their utility maximization problem as given by Equation 4.
It is a hilariously apt (albeit mildly offensive) diagnosis, and it could be just as well applied to Homo economicus himself, the economic actor envisioned by the neoclassical theory, who performs dazzling calculations of utility maximization despite being entirely unable to communicate with his fellow man.
Consumer behavior is modeled as a process of utility maximization, subject to the constraint imposed by consumer income.
The individual, however, considers profits as fixed in her utility maximization problem.
1983) "Staggered Prices in a Utility Maximization Framework.
This paper examines empirical common stock data sets to investigate the opportunity costs of mean--variance optimal portfolios as compared to an investor's direct expected utility maximization.
Krugman shows that the liquidity trap is not an artifact of the IS-LM model's incompleteness: even in a "modern" macroeconomic model based on intertemporal utility maximization by a representative agent, the liquidity trap can arise.