utility

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Related to Utility theory: Marginal utility theory

u·til·i·ty

(yū-til'i-tē),
In biomedical ethics and clinical decision analysis, the satisfaction or economic advantage gained from the outcome that results from a particular decision.
References in periodicals archive ?
Precisely such an iterative process of advance was suggested when Block and Marschak characterized their random utility theory in stochastic choice data:
The most significant issue is perhaps the 'mutation' of the self-understanding of marginal utility theory into a non-explanatory discipline.
In Section 3, we briefly outline fuzzy logic and utility theory as preliminaries.
This particular paper researcher is using two different theory expected utility theory (EUT) and theory of planned behavior (TPB) to understand farmer's adoption decision.
These fairness perceptions can be the result of perceived value, which is the focus of transaction utility theory.
Utility theory, however, did not seem to account consistently enough for how people actually made decisions that carried risk (Kahneman and Tversky 1979: 263), such as in gambling and purchasing insurance.
Although some of the cast are familiar, this section of the book brings out rather well the part of this debate in the early 1950s that took place around how to interpret the axiomatization of expected utility theory. It has experiments and involves psychologists as much as economists.
In Section 2, a multisquad dynamic allocation of the fault tasks based on utility theory is discussed.
The research resulted in a new innovated theory that combines the philosophical comparative approach to probability, the frequency interpretation of probability, dynamic Bayesian networks and the expected utility theory. It enables engineers to write self-learning algorithms that use example of behaviours to model situations, evaluate and make decisions, diagnose problems, and/or find the most probable consequences in realtime.
MPT uses assumptions of von Neumann and Morgenstern's expected utility theory (Von Neumann and Morgenstern, 1944).
As a result, scholars have proposed many alternatives to explain the deviations from expected utility theory. Among them, prospect theory is seen as the gold standard and has won Kahneman a Nobel Prize in Economics.