Search results
Results From The WOW.Com Content Network
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.
Utility is maximized when we integrate a mixed gain. 4) Mixed loss: again, one of and is a gain and one is a loss, however the loss is now significantly larger than the gain. In this case, () + > (). Clearly, we don't want to integrate a mixed loss when the less is significantly larger than the gain.
Satisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met, without necessarily maximizing any specific objective. [1]
Behavioral game theory seeks to examine how people's strategic decision-making behavior is shaped by social preferences, social utility and other psychological factors. [1] Behavioral game theory analyzes interactive strategic decisions and behavior using the methods of game theory, [2] experimental economics, and experimental psychology.
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.
The word utility is used to mean general well-being or happiness, and Mill's view is that utility is the consequence of a good action. Utility, within the context of utilitarianism, refers to people performing actions for social utility. By social utility, he means the well-being of many people.
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
Search rule: Search cues in the order of their validity versus; Stopping rule: Stop search on finding the first cue that discriminates between the two alternatives (i.e., one cue values are 0 and 1). Decision rule: Infer that the alternative with the positive cue value (1) has the higher criterion value.