where [alpha] and [gamma] are scalars, [beta] is a column vector of the coefficients for the controls x, and g is a CRRA utility function
for the relation with income
Second, the utility function
values for four (n) relationships and six (m) strategies ([U.
Algorithm for solving multicriteria problem of choice of banknote deterioration characteristics using the utility function
, Research Bulletin of National Technical University of Ukraine Kyiv Polytechnic Institute 1: 68-75.
In his discrete-choice analysis minivan consumption is a lumpy good, so the specification of the utility function
is not central.
This multiple attribute utility function
is then applied to help the decision maker reach an optimal decision.
It is assumed that the utility function
(U) is increasing in real consumption (C) and real money balances (M/P), and it is twice differentiable, with P as the price level and M as nominal money.
The rate of time discounting is a well-defined marginalist concept that can be defined independently of the structure of the utility function
, as in Epstein (1987), and that needs to be computed with the general recursive specification.
In all three cases, the influence of a group-level utility function
is hypothesized to moderate or constrain the otherwise dominant influence of the individual-level utility function
of each criterion Code of the criterion [y.
24) The only social utility function
that is not altered by the definition of society is the one based on potential (not actual) Pareto efficiency.
The Pratt and Arrow measure of absolute risk aversion r(x) of a decision maker with (strictly increasing and twice differentiable) utility function
u(x) is given by
This utility function
representation variables are [p.