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A single-attribute utility function maps the amount of money a person has (or gains), to a number representing the subjective satisfaction he derives from it. The motivation to define a utility function comes from the St. Petersburg paradox: the observation that people are not willing to pay much for a lottery, even if its expected monetary gain is infinite.
In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. In a normative context, utility refers to a goal or objective that we wish to maximize, i.e., an objective function.
A utility representation theorem gives conditions on a preference relation, that are sufficient for the existence of a utility representation. Often, one would like the representing function u to satisfy additional conditions, such as continuity.
Hence, his utility is (,). In a cloud computing environment, there is a large server that runs many different tasks. Suppose a certain type of a task requires 2 CPUs, 3 gigabytes of memory and 4 gigabytes of disk-space to complete. The utility of the user is equal to the number of completed tasks.
This is what Gorman called “the polar form of the underlying utility function.” Gorman's use of the term polar was in reference to the idea that the indirect utility function can be seen as using polar rather than Cartesian (as in direct utility functions) coordinates to describe the indifference curve.
Other versions of negative utilitarianism differ in how much weight they give to negative well-being ('disutility') compared to positive well-being (positive utility), as well as the different conceptions of what well-being (utility) is. For example, negative preference utilitarianism says that the well-being in an outcome depends on frustrated ...
An example of how indifference curves are obtained as the level curves of a utility function. A graph of indifference curves for several utility levels of an individual consumer is called an indifference map. Points yielding different utility levels are each associated with distinct indifference curves and these indifference curves on the ...
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.