The elicited utility function
by the engineers for the reliability of these electrical components was given in the form of Equation 7 and is written as shown in Equation 16:
is used to easily describe preferences.
u]) = 1, that is, if agent u's optimal investment in self-insurance coincides with that undertaken by a risk-neutral individual, the degree of concavity of the utility function
does not have any effect so that there is unanimity among all risk-averse decision makers regarding the optimal level of self-insurance.
One common representation of Gorman preferences is the quasi-linear utility function
ip] is the utility function
of the squad's pth atomic capability to the fault's pth atomic demand, reflecting that the closer a squad's capability to a fault's demand is, the higher the overall utility of faults task allocation is under the premise of meeting fault demands.
Second, because consumption data are not available, we assume that the utility function
can be expressed in terms of income.
The overall utility function
combines the weights of importance of relationships between project parties and the ranking of risk-minimization strategies.
As it is impossible to correctly evaluate intaglio printing parameters influence on banknotes durability on the basis of individual characteristics the complex quality index was determined on basis the utility function
considering large quantity of durability characteristics.
is an ordinal utility function
for Gina if, whenever Gina ranks one bundle over a second bundle, this function assigns the first a higher number.
If consumer's preferences are simple (e = 0) a utility function
can lead to a demand function with a low price elasticity (b < 0, 0 < /E/ < 1), to a demand function with a high price elasticity (b > 0, /E/ > 1) or to a demand function with the price elasticity equal to 1 (b = 0, /E/ = 1), possibilities are wider now.
That is, what utility function
or demand equation should be used for estimating the welfare associated with the introduction of a new good?
This multiple attributes utility function
is then applied to help the decision maker reach an optimal decision.