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. The New York Times Financial Glossary

Financial and business terms. 2012.

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  • utility function — noun (economics) A mathematical function relating goods and services to their utility to individuals • • • Main Entry: ↑utility …   Useful english 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. Bloomberg Financial Dictionary …   Financial and business terms

  • utility function — noun A mathematical function that assigns a real number to every element of the outcome space in a way that captures the agents preferences over both simple and compound lotteries …   Wiktionary

  • God's utility function — is a phrase coined by Richard Dawkins in his book River Out of Eden. God s utility function is the third chapter in this book. Dawkins uses this phrase to expound the Gene centered view of evolution by equating the phrase to the meaning of life… …   Wikipedia

  • Indirect utility function — In economics, a consumer s indirect utility functionv(p, w) gives the consumer s maximal utility when faced with a price level p and an amount of income w. It represents the consumer s preferences over market conditions.This function is called… …   Wikipedia

  • Stone-Geary utility function — The Stone Geary utility function takes the form:U = prod {i} (q i gamma i)^{eta {iwhere U is utility, q i is consumption of good i, and eta and gamma are parameters.For gamma i = 0, the Stone Geary function reduces to the generalised Cobb… …   Wikipedia

  • Time utility function — Time/utility functions were introduced by E. Douglas Jensen in 1977 as a way to overcome the limited expressiveness in classic deadline constraints in real time systems. Time/utility function time constraints (or TUFs) and utility accrual (UA)… …   Wikipedia

  • Friedman-Savage utility function — The Friedman Savage utility function is the theory that Milton Friedman and Leonard J. Savage put forth in their 1948 paper [ Utility Analysis of Choices Involving Risk with Leonard Savage, 1948, Journal of Political Economy Vol. 56, No. 4 (Aug …   Wikipedia

  • Utility — This article is about the economic concept. For other uses, see Utility (disambiguation). Part of a series on Utilitarianism …   Wikipedia

  • Utility maximization problem — In microeconomics, the utility maximization problem is the problem consumers face: how should I spend my money in order to maximize my utility? Basic setupSuppose their consumption set, or the enumeration of all possible consumption bundles that… …   Wikipedia

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