| Utility theory: Utility theory is a concept from economics and ethics that states that actions or decisions should be evaluated on the basis of maximum utility. In economics, utility theory describes how individuals make decisions in order to maximize their utility or well-being. It assumes that people make rational decisions by evaluating the available options and choosing the one that promises the highest personal benefit. This theory is used in microeconomics and decision theory. See also utilitarianism, rationality, decision theory, Multi-attributive utility theory._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |
