expected utility function
1Expected utility hypothesis — In economics, game theory, and decision theory the expected utility hypothesis is a theory of utility in which betting preferences of people with regard to uncertain outcomes (gambles) are represented by a function of the payouts (whether in… …
2Utility 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… …
3utility 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 …
4Subjective expected utility — is a method in decision theory in the presence of risk, originally put forward by L. J. Savage in 1954 [Savage, Leonard J. 1954. The Foundations of Statistics . New York, Wiley.] . It combines two distinct subjective concepts: a personal utility… …
5Rank-dependent expected utility — The rank dependent expected utility model (originally called anticipated utility) is a generalized expected utility model of choice under uncertainty, designed to explain the behaviour observed in the Allais paradox, as well as for the… …
6Generalized expected utility — The expected utility model developed by John von Neumann and Oskar Morgenstern dominated decision theory from its formulation in 1944 until the late 1970s, not only as a prescriptive, but also as a descriptive model, despite powerful criticism… …
7Utility — This article is about the economic concept. For other uses, see Utility (disambiguation). Part of a series on Utilitarianism …
8Loss function — In statistics and decision theory a loss function is a function that maps an event onto a real number intuitively representing some cost associated with the event. Typically it is used for parameter estimation, and the event in question is some… …
9Cobb–Douglas production function — A two input Cobb–Douglas production function In economics, the Cobb–Douglas f form of production functions is widely used to represent the relationship of an output to inputs. Similar functions were originally used by Knut Wicksell (1851–1926),… …
10Marginal utility — In economics, the marginal utility of a good or service is the utility gained (or lost) from an increase (or decrease) in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that… …
