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  2. Utility - Wikipedia

    en.wikipedia.org/wiki/Utility

    One use of the indirect utility concept is the notion of the utility of money. The (indirect) utility function for money is a nonlinear function that is bounded and asymmetric about the origin. The utility function is concave in the positive region, representing the phenomenon of diminishing marginal utility. The boundedness represents the fact ...

  3. Isoelastic utility - Wikipedia

    en.wikipedia.org/wiki/Isoelastic_utility

    The isoelastic utility function is a special case of hyperbolic absolute risk aversion and at the same time is the only class of utility functions with constant relative risk aversion, which is why it is also called the CRRA utility function. In statistics, the same function is called the Box-Cox transformation. It is

  4. Leontief utilities - Wikipedia

    en.wikipedia.org/wiki/Leontief_Utilities

    Leontief utility functions represent complementary goods. For example: For example: Suppose x 1 {\displaystyle x_{1}} is the number of left shoes and x 2 {\displaystyle x_{2}} the number of right shoes.

  5. Von Neumann–Morgenstern utility theorem - Wikipedia

    en.wikipedia.org/wiki/Von_Neumann–Morgenstern...

    In decision theory, the von Neumann–Morgenstern (VNM) utility theorem demonstrates that rational choice under uncertainty involves making decisions that take the form of maximizing the expected value of some cardinal utility function. This function is known as the von Neumann–Morgenstern utility function.

  6. Category:Utility function types - Wikipedia

    en.wikipedia.org/wiki/Category:Utility_function...

    This category is for specific utility functions, properties or classes of utility functions. Pages in category "Utility function types" The following 43 pages are in this category, out of 43 total.

  7. Linear utility - Wikipedia

    en.wikipedia.org/wiki/Linear_utility

    E.g., the commodity is a heterogeneous resource, such as land. Then, the utility functions are not functions of a finite number of variables, but rather set functions defined on Borel subsets of the land. The natural generalization of a linear utility function to that model is an additive set function.

  8. Constant elasticity of substitution - Wikipedia

    en.wikipedia.org/wiki/Constant_elasticity_of...

    Constant elasticity of substitution (CES) is a common specification of many production functions and utility functions in neoclassical economics.CES holds that the ability to substitute one input factor with another (for example labour with capital) to maintain the same level of production stays constant over different production levels.

  9. Expected utility hypothesis - Wikipedia

    en.wikipedia.org/wiki/Expected_utility_hypothesis

    The expected utility of any gamble may be expressed as a linear combination of the utilities of the outcomes, with the weights being the respective probabilities. Utility functions are also normally continuous functions. Such utility functions are also referred to as von Neumann–Morgenstern (vNM) utility functions.