utility

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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 ?
Before numerically solving the utility maximization problems presented above, it is appropriate to point out the limitations of this model.
Table 1 shows that most of the models are based on the random utility maximization behavioral assumption.
The red lines in Figure 4A show the budget constraint and the utility maximization problem for such postpay customers.
We need to show that if taxes are as specified in the theorem's statement, then the choices for labor, consumption, and savings prescribed by the optimal allocation [A.sup.*] solve the agent's utility maximization problem.
We have presented a model for the mobility aware joint design of congestion control routing and scheduling for ad hoc wireless networks by extending the framework of network utility maximization to utility cost maximization and applying dual-based decompositions.
For that reason, to preserve convexity and prevent from becoming into non-convex problem, the problem of utility maximization is reformulated as follows.
More recently, sociological rational-choice theorists have emphasized that values other than utility maximization can govern human behavior.
In such models people only learn enough about a product of service to make an informed choice, which ex ante, would solve a constrained utility maximization problem.
A major problem with utility maximization as a social welfare criterion is that utility is, strictly speaking, ordinal rather than cardinal.
The topics include the structure of random utility models, applied welfare economics with discrete choice models, the compatibility of nested logit models with utility maximization, forecasting new product penetration with flexible substitution patterns, and an econometric analysis of residential electric appliance holdings and consumption.
The seventh essay illustrates the historical making of utility maximization. Drawing on the example of consumer behavior in Japan, Katzner demonstrates the potential fallacies if utility maximization is to be applied to economic contexts in which individual motivations arise from sources other than the pursuit of self-interest.
Kalvelagen (2003) discusses the well known optimization problem of utility maximization under a budget constraint, constructing interesting non-trivial variants by assuming some non-linear pricing structures actually observed in daily life.