In mathematical economics, an isoelastic function, sometimes constant elasticity function, is a function that exhibits a constant elasticity, i.e. has...

In economics, the isoelastic function for utility, also known as the isoelastic utility function, or power utility function, is used to express utility...

preference relation has properties 1–5, then the function w must be the isoelastic function: c 1 − η − 1 1 − η {\displaystyle {\frac {c^{1-\eta }-1}{1-\eta }}}...

price rises to infinity even though quantity approaches zero. See Isoelastic function.) Perfect P-elasticity of Q: P is constant as Q changes Perfect P-inelasticity...

This feature explains why the exponential utility function is considered unrealistic. Though isoelastic utility, exhibiting constant relative risk aversion...

the isoelastic utility function is a cardinal utility function that represents preferences on lotteries. A CES indirect (dual) utility function has been...

function, the exponential utility function, and the isoelastic utility function. A utility function is said to exhibit hyperbolic absolute risk aversion...

form for within period utility (also called the power utility or isoelastic utility). The reason is that, in combination with additivity over time...

function, e.g., the slanted line Q ( P ) = 3 P − 6 {\displaystyle Q(P)=3P-6} , and 2) the constant-elasticity supply function (also called isoelastic...

these imply various alternative utility functions such as: CES (constant elasticity of substitution). Isoelastic utility Exponential utility Quasilinear...

disentangled from the coefficient of relative risk aversion. The isoelastic utility function u ( c ) = c 1 − ρ − 1 1 − ρ {\displaystyle u(c)={\frac {c^{1-\rho...

utility index. Importantly, unlike von Neumann–Morgenstern utility functions (e.g. isoelastic utility), Epstein–Zin preferences allow the elasticity of intertemporal...

utility functions of divisible goods. These functions are commonly used as examples in consumer theory. The functions are ordinal utility functions, which...

test. Strain gauges that are not self-temperature-compensated (such as isoelastic alloy) can be temperature compensated by use of the dummy gauge technique...

^{t}u(c_{t}^{vol})} and solving for λ {\displaystyle \lambda } For the case of isoelastic utility, given by u ( c t ) = c t 1 − θ − 1 1 − θ {\displaystyle u(c_{t})={\frac...