utility function

(redirected from utility functions)
Also found in: Dictionary.

Utility function

A mathematical expression that assigns a value to all possible choices. In portfolio theory, the utility function expresses the preferences of economic entities with respect to perceived risk and expected return.

Utility Function

The expression of desire in mathematical terms. Utility function is important in investing; it may show the usefulness of investing in some securities as opposed to different ones. For instance, a stock with low risk and a high return has a higher utility function than a stock with high risk and a low return. See also: Marginal Utility.

utility function

a function denoting the quantities of goods and services that an individual consumes, of the form:

where Ut = total utility and x1 ,x2 . products consumed.

In order to achieve CONSUMER EQUILIBRIUM, the individual will select a combination of products, in line with his preferences, that maximizes his TOTAL UTILITY from his given income. See


References in periodicals archive ?
This paper uses a three-stage least squares model to reveal whether the utility functions of donors and aid recipients are interdependent as the theory of two-sided markets predicts.
Figure 1 compares two exponential utility functions for varying levels of risk tolerance - risk averse vs.
3) Finally, although our energy allocation algorithm is proposed for soft QoS traffic type it is also suitable for hard QoS or best effort QoS traffic type when utility function is very steep or flat.
This article reinvestigates the impact of the concavity of an agent's utility function on self-insurance and self-protection decisions when they are modeled in a two-period sense.
9) So, empirical estimation of Equation (1) assumes that all consumers have identical Cobb-Douglas utility functions.
The multi-attribute utility theory was used for the calculation of the overall utility functions used to define the ranking of strategies for minimization of risks caused by information asymmetries in the construction phase offered by Schieg (2008).
Formed utility functions show that in totality of characteristics the most durable are the samples obtained under medium pressure during the printing nip at double side intaglio printing.
In simple models, preference coefficients in utility functions are constant.
Specifically, assume that the utility functions for general goods consumption and computers have different degrees of curvature:
They integrated utility functions with the variable interdependent parameters method to evaluate alternatives through an additive value function regarding mean time to repair, contract cost, and the geographical spread of the candidate's service network, the candidate's reputation and the compatibility of company cultures.
Furthermore, since money is used to acquire goods and services that in turn impacts consumption, it is posited that the income velocity of money is positively related to the marginal propensity to consume, given that money and consumption are arguments in the utility function of the representative agent.
These 11 peer-reviewed papers from that gathering consider such aspects as Calabi-Bernstein problems for spacelike slices in certain generalized Robertson-Walker spacetimes, generalized Einstein metric conditions, projective structure in space-times, time functions as utility functions, and homologically maximizing geodesic in conformally flat tori.

Full browser ?