Meaning of utilon | Babel Free

Definitions

A hypothetical unit measuring satisfaction.

Examples

“However, you have to realize that you should measure the costs and payoffs in utilons, not in dollars. $1 is almost infinitesimally small (in utilons), while $1M payoff is huge - it is perfectly rational to buy the ticket.”

“A trader or trading firm having zero wealth, I've already said, should be considered infinitely bad. So therefore assign -∞ utilons to zero wealth. Conversely, infinite wealth should probably have infinity utilons, though large numbers might behave oddly.”

CEFR level