Difference between revisions of "Utility function"

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A utility function assigns numerical values to outcomes, in such a way that outcomes with higher values are always [[preferences|preferred]] to outcomes with lower values.
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{{wikilink|Expected utility hypothesis}}
 
{{wikilink|Expected utility hypothesis}}
 
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Revision as of 22:18, 28 August 2009

A utility function assigns numerical values to outcomes, in such a way that outcomes with higher values are always preferred to outcomes with lower values.

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