In this problem, the optimal path is one that maximizes the expected utility, with the utility function being piecewise-linear and concave. Such a utility function can be used to approximate nonlinear ...

This paper provides a framework for analyzing SEMs ("LISREL" models) that include nonlinear functions of latent or a mix of latent and observed variables in their equations. It permits such nonlinear ...

While I do spend lots of time pushing the idea of linear approximations on my students, we do need nonlinear functions to describe most interesting physical phenomena.