Since 2014
A contribution to theory of utility functions
The Scientific Journal for Economics and Management
View Archive Info| Field | Value | |
| Title |
A contribution to theory of utility functions
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| Creator |
Vaněčková, Eva
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| Description |
The paper deals with two specific types of utility functions displaying decision maker's risk aversion at expressing the utility of monetary values. These functions are following: w(c) = 1 – e-x/R, u(x) = ln(x + R), where x is a monetary value and R is a constant expressing the degree of risk tolerance. Basic properties of the above mentioned functions and formulas for calculations of certainty equivalents and risk premiums are derived. Some properties of the analyzed functions are numerically and graphically illustrated by concrete examples.
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| Publisher |
University of South Bohemia in České Budějovice, Faculty of Economics
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| Date |
2012-08-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://ojs.ef.jcu.cz/acta/article/view/67
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| Source |
Acta Universitatis Bohemiae Meridionalis; Vol 3 No 2 (2000); 29-34
2336-4297 1212-3285 |
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| Language |
eng
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| Relation |
http://ojs.ef.jcu.cz/acta/article/view/67/65
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