Fact checked by Ariel Courage Reviewed by Erika Rasure What Is Utility Function? A utility function measures a consumer’s preference and satisfaction with different goods or services. As part of ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. In economics, demand is the consumer's ...

According to the concept of finite sensibility an individual utility function has to fulfill Ng's (1975) Convention 1. In this paper we show that relatively weak assumptions already guarantee the ...

George Monbiot wants to tell us all that coaches and public transport, bicycles, are much more efficient methods of transport than the private car, therefore to increase utility we should all be using ...

This note shows that, under appropriate conditions, preferences may be locally approximated by the linear utility or risk-neutral preference functional associated with a local probability ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Erika Rasure is globally-recognized as a leading consumer economics subject ...