Utility

In <a href="/facts/Economics/HYctA2Dn">economics</a>, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings.

<ul><li>In a <a href="/facts/Normative_economics/3mo8HD4c">normative</a> context, utility refers to a goal or objective that we wish to maximize, i.e., an <a href="/facts/Objective_function/xv5ozuhl">objective function</a>. This kind of utility bears a closer resemblance to the original <a href="/facts/Utilitarianism/CVw8Dmmt">utilitarian</a> concept, developed by moral philosophers such as <a href="/facts/Jeremy_Bentham/P2n90Uhx">Jeremy Bentham</a> and <a href="/facts/John_Stuart_Mill/0QxUR9l7">John Stuart Mill</a>.</li>
<li>In a <a href="/facts/Positive_economics/lDGMfowN">descriptive</a> context, the term refers to an apparent objective function; such a function is <a href="/facts/Revealed_preference/rkonKDr4">revealed by a person's behavior</a>, and specifically by their preferences over <a href="/facts/Lottery_(decision_theory)/7Pb8Fylf">lotteries</a>, which can be any quantified choice.</li></ul>
The relationship between these two kinds of utility functions has been a source of controversy among both <a href="/facts/Economics/HYctA2Dn">economists</a> and <a href="/facts/Ethics/wNVNgL5q">ethicists</a>, with most maintaining that the two are distinct but generally related.

Utility open-in-new

Utility