Saturday, April 4, 2009

On dollars, utility, and crack cocaine by Phil Goetz

"Utility functions are sigmoidal. A serviceable utility function over one dimension might be u(U) = k * ([1 / (1 + e^(-U))] - .5). It's steep around U=0, and shallow for U >> 0 and U << 0."

The green, blue and red curves show the utility function for increasing values of k.

In response to

No comments:

Post a Comment