Definition of utility function in English:

Share this entry

utility function

noun

Economics
A mathematical function which ranks alternatives according to their utility to an individual.
Example sentences
  • According to this model, individuals have a utility function defined over their own consumption.
  • For computational convenience it is assumed that all individuals have the same utility function.
  • For example, it would be useful for economists to know how custom would enter the utility function or how it would affect restrictions.
Share this entry
 

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.