Jump to ContentJump to Main Navigation

Overview

marginal utility of wealth


Quick Reference

The increase in an individual's utility consequent on a small increase in their total wealth, per unit of the increase. If an individual is risk-averse the marginal utility of wealth is a decreasing function of wealth. The marginal utility of wealth is constant for a risk-neutral individual, and increasing for a risk-loving individual. See also marginal utility of income.

Subjects: economics.


Reference entries