Utility Definition and 5 Discussions

Within economics, the concept of utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness within the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill. The term has been adapted and reapplied within neoclassical economics, which dominates modern economic theory, as a utility function that represents a single consumer's preference ordering over a choice set but is not comparable across consumers. This concept of utility is personal and is based on choice rather than on the pleasure received, and so is more rigorously specified than the original concept but makes it less useful (and controversial) for ethical decisions.

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  1. Cantor080

    I Was there any need or utility or aim, for Cantor's theory?

    Was there any need or utility or aim, for which Cantor created his theory? Did Cantor's theory clear any of the problems which existed before? (Though my user name is Cantor, I don't know lot about him or his theory :biggrin:) Reddit...
  2. R

    What if speed=time/distance? Torpidity

    I really liked this thread I just found on this forum. I would like to continue it as I just read Feynman Checkerboard as a Model of Discrete Space-Time. This addresses space time on a checker board with single time units on one axis and a single space dimension on the other. There are only...
  3. P

    How will cheap energy affect the economy?

    I've been following a lot of news and articles about various technologies potentially providing abundant energy at dirt cheap prices. I don't want to advocate about any single technology that will provide cheap and abundant energy; however, it is becoming more and more clear that renewables will...
  4. vabm

    Enunciation/notation in utility maximisation model

    Hi Everyone. I am working on a model that I think can be defined as a utility optimisation problem but I'm struggling with the enunciation and notation. The model should describe how the utilities of a set of agents A={1,2,...,n} increase with the availability of a larger set of product types...
  5. C

    Mathematical Game Theory (Von Neumann Morganstern Utility)

    1: If u: omega---> reals is a Von Neumann Morganstern Utiliy function and L is a lottery, prove that expectation E is "linear" ie: E(Au(L)+B)=AEu(L)+B 2. Given none: The Attempt at a Solution : My attempt at a solution has gone nowhere. I found a stanford and princeton game theory notes that...