Editing Utility (section)

==Indirect utility==
{{Main|Indirect utility}}

An indirect utility function gives the [[Value function|optimal attainable value]] of a given utility function, which depends on the prices of the goods and the income or wealth level that the individual possesses.

===Money===

One use of the indirect utility concept is the notion of the utility of money.  The (indirect) utility function for money is a nonlinear function that is [[bounded function|bounded]] and asymmetric about the origin. The utility function is [[concave function|concave]] in the positive region, representing the phenomenon of [[diminishing marginal utility]].  The boundedness represents the fact that beyond a certain amount money ceases being useful at all, as the size of any economy at that time is itself bounded.  The asymmetry about the origin represents the fact that gaining and losing money can have radically different implications both for individuals and businesses.  The non-linearity of the utility function for money has profound implications in decision-making processes: in situations where outcomes of choices influence utility by gains or losses of money, which are the norm for most business settings, the optimal choice for a given decision depends on the possible outcomes of all other decisions in the same time-period.<ref>{{cite book |first=J. O. |last=Berger |title=Statistical Decision Theory and Bayesian Analysis |location=Berlin |publisher=Springer-Verlag |edition=2nd |year=1985 |chapter=Utility and Loss |isbn=3-540-96098-8 }}</ref>