Fact checked by Ariel Courage Reviewed by Erika Rasure What Is Utility Function? In economics, the utility function measures the welfare or satisfaction of a consumer as a function of the ...

In the theory of preferences underlying utility theory it is generally assumed that the indifference relation is transitive, and this leads to equivalence classes of indifferent elements or, equally, ...

Rabin (Econometrica 68 (5): 1281-1292, 2000) argues that, under expected-utility, observed risk aversion over modest stakes implies extremely high risk aversion over large stakes. Cox and Sadiraj ...

Citation Green, Jerry R. "'Making Book Against Oneself,' the Independence Axiom, and Non-Linear Utility Theory." Quarterly Journal of Economics 102, no. 4 (November 1987): 785–796.