Preferences and Utility Functions
Utility functions are a mathematical representation of an individual’s preferences for different goods and services.
The notion of utility is motivated by a basic problem faced when allocating limited resources (such as bandwidth or power) to users of a wireless network: How should one account for differences in the users’ needs for these resources? These differences can arise due to users running different applications that require different quality of service (QoS) levels or even for the same application due to differences in how users perceive changes in QoS. Moreover, modern wireless networks exist in evolving market structures with multiple competing firms using heterogeneous technologies. Understanding how this competition and the regulation around it impact end users again requires modeling user preferences for different services. The concept of utility is a way of providing a common metric for...
- Rubinstein A (1998) Modeling bounded rationality. MIT Press, CambridgeGoogle Scholar