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What is Exponential Utility Function

Chapter 233
Encyclopedia of Business Analytics and Optimization
A concave utility function commonly used to depict the utility function of a risk-averse individual, , where is the dollar amount and R is the risk tolerance parameter.
Published in Chapter:
Utility Functions and Risk Attitudes in Decision Analysis
Candice H. Huynh (University of California, Irvine, USA) and Wenting Pan (Saint Mary's College of California, USA)
Copyright: © 2014 |Pages: 14
DOI: 10.4018/978-1-4666-5202-6.ch233
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