Chapter

Personal Utility and Welfare

Ian Malcolm David Little

in Ethics, Economics, and Politics

Published in print October 2002 | ISBN: 9780199257041
Published online August 2004 | e-ISBN: 9780191601293 | DOI: http://dx.doi.org/10.1093/0199257043.003.0001
 Personal Utility and Welfare

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The economist's concept of utility is based on choice. If economic man chooses A rather than B, he is deemed to get more utility with A and to be better off, having reached a preferred position. Choosing between uncertain outcomes permits expected utility to be measured cardinally. Risk and equality are related. Utility theory is the cornerstone of normative economics, providing a criterion of better‐offness.

Keywords: better‐offness; choice; equality; preference; risk; utility

Chapter.  2969 words. 

Subjects: Public Economics

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