Economics: Terms and Concepts

Encyclopedia of Management A Dictionary of Business and Management Further reading

utility theory

A Dictionary of Business and Management | 2006 | Copyright

utility theory A class of theory concerned with the behaviours, strategies, and mental processes adopted by individuals faced with making a risky choice or decision. Utility is usually taken as the subjective value to the individual of a particular outcome or attribute. The main applications of utility theory in business and finance are in relation to consumer and investment choices. Different structures of utility and risk preference are considered in portfolio theory. See also conjoint analysis; prospect theory.

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Free newspaper and magazine articles

	Handbook of Utility Theory.(Review) Magazine article from: Journal of Risk and Insurance; 6/1/2001
	Generalized Expected Utility Theory - The Rank-Dependent Model. Magazine article from: Journal of Risk and Insurance; 12/1/1996
	The limitations of prospect theory and the expected utility theory: a new... Magazine article from: Atlantic Economic Journal; 6/1/2010