Utility Maximization
Often preferences are described by their utility function or payoff function. This is an ordinal number an individual assigns over the available actions, such as:
The individual's preferences are then expressed as the relation between these ordinal assignments. For example, if an individual prefers the candidate Sara over Roger over abstaining, their preferences would have the relation:
Read more about this topic: Rational Choice Theory
Famous quotes containing the word utility:
“Moral sensibilities are nowadays at such cross-purposes that to one man a morality is proved by its utility, while to another its utility refutes it.”
—Friedrich Nietzsche (1844–1900)
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