2min chapter

Behind the Bastards cover image

The Sam Bankman-Fried Update

Behind the Bastards

CHAPTER

The Importance of Utility Functions in Economics

In economics, a utility function is the measure of welfare or satisfaction of a consumer as a function of the consumption of real goods like food. In simple terms, it's a way of describing the satisfaction or other benefits gained by consuming a specific resource. But most people who aren't economists think that talking about the economy this way is silly because people are not in fact rational actors.

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