Exponentiation
Exponentiation is a mathematical operation, written as , involving two numbers, the "base" and the "exponent" . When is a positive integer, exponentiation corresponds to repeated multiplication of the base: that is, is the product of multiplying bases:
Exponential utility
In economics and finance, exponential utility is a specific form of the utility function, used in some contexts because of its convenience when risk (sometimes referred to as uncertainty) is present, in which case expected utility is maximized. Formally, exponential utility is given by: