Fact checked by Ariel Courage Reviewed by Erika Rasure What Is Utility Function? In economics, the utility function measures the welfare or satisfaction of a consumer as a function of the ...

Read about the concept of utility in microeconomics, and learn why economists disagree about its usefulness in the analysis of actions.

The utility function can be used to derive the demand function, and both concepts relate to utility maximization.

The concepts of conditional risk aversion, the conditional risk premium, and risk independence pertaining to multiattributed utility functions are defined. The latter notion is then generalized to ...

Utility functions offer a means to encode objectives and preferences in investor portfolios. The functions allow one to place a score on outcomes and then identify optimal portfolios by maximizing ...