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utility function

Line breaks: util|ity func|tion

Definition of utility function in English:

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.

Definition of utility function in:

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