utility theory

utility theory A class of theory concerned with the behaviours, strategies, and mental processes adopted by individuals faced with making a risky choice or decision. Utility is usually taken as the subjective value to the individual of a particular outcome or attribute. The main applications of utility theory in business and finance are in relation to consumer and investment choices. Different structures of utility and risk preference are considered in portfolio theory. See alsobehavioural finance; conjoint analysis; prospect theory; rational choice theory; time inconsistency.

• decentralization
• deceptive advertising
• decider
• decimal currency
• decision making
• decision-making unit
• decision model
• decision support system
• decision table
• decision tree
• deck cargo
• declaration of dividend
• declaration of solvency
• decline stage
• decreasing term assurance
• deductible
• deduplication
• deed
• deed of arrangement
• deed of assignment
• deed of partnership
• deed of variation
• deed poll
• deep-line strategy
• deeply discounted security