Utility Function

Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)


The utility function is an important concept when modelling decision making under uncertainty. This chapter provides a description of different forms of the utility function including the expected utility model (EU-model) and its derived forms.


Expected utility Utility function Linear utility function Leontief utility function Cobb-Douglas utility function Cardinal utility function Neumann-Morgenstern utility function CARA DARA Rate of substitution in utility (RSU) Risk aversion Risk-neutral EV-utility function 


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Copyright information

© Svend Rasmussen 2011

Authors and Affiliations

  1. 1.Institute of Food and Resource EconomicsUniversity of CopenhagenFrederiksberg C, CopenhagenDenmark

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