In this problem, the optimal path is one that maximizes the expected utility, with the utility function being piecewise-linear and concave. Such a utility function can be used to approximate nonlinear ...

In the case of risk represented by a linear utility function over a mixture space, the precise form of the function is examined in detail. Econometrica publishes original articles in all branches of ...

The utility function can be used to derive the demand function, and both concepts relate to utility maximization.