Utility

Utility

"Utility is the variable whose relative magnitude indicates the direction of preference. In finding his or her preferred position, the individual is said to maximize utility."

See Also

• Utilitarians
• Diminishing Marginal Utility
• Jeremy Bentham

Sources

• Hirsheifer, Jack and Amihai Glazer and David Hirshleifer. Price Theory and Applications: Decisions, Markets, and Information (seventh ed.) 2005 Cambridge University Press.