utility

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Related to Utility theory: Marginal utility theory

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 ?
It also seems reasonable to expect that the strict assumptions associated with simple constructs might be relaxed to form a more general model encompassing a greater range of cases, enhancing, if not the predictive ability of utility theory, the explanatory ability of microeconomic analysis.
He argued that other treatments of utility theory had to assume a util - a fictitious unit of utility - and that this confusion was widespread.
Motivations Considered Inconsistent with Standard Utility Theory
If utility theory better describes strategic managers' decision behaviors, then prescriptions designed to enhance the process may focus on engineering better choices (e.
The Standard Gamble (SG) is based directly on the axioms of vNM utility theory (or expected utility theory).
Random utility theory assumes the analysts samples randomly from households that differ in their indirect utility functions only by an additive error term.
The American school is based on multi-attribute value functions and multi-attribute utility theory (MAUT) (Keeny and Raiffa 1976).
Four is the number of safe lotteries that aligns with risk neutral preferences according to expected utility theory.
He uses econometric examples involving practical policy issues in order to discuss production function and regression methods; univariate time series analysis; bivariate time series analysis including stochastic diffusion and cointegration; utility theory and empirical implications; vector models for multivariate problems; simultaneous equation models; limited dependent variable models; dynamic optimization and empirical analysis of consumer behavior; single, double, and maximum entropy bootstrap and inference; generalized least squares, vector autoregressive moving average models, and estimating functions; and nonlinear models and projection pursuit regression.
The expected utility theory of tax evasion, however, provides an inadequate framework for incorporating these considerations.
Expected utility theory (Von Neumann & Morgenstern, 1944) proposes that individuals make rational choices based on the level of relevant decision criteria (Friedman & Savage, 1948).
Within utility theory, the economic interpretation of a negative quantity of a good or a service is that the agent gives (sells) it away.