Expected Utility Theory
A theory in economics that models how rational individuals make decisions under risk by maximizing the expected utility of their choices.
29 topics found for
“utility theory”
Allais Paradox
A decision-making paradox that shows people's preferences can violate the expected utility theory, highlighting irrational behavior.
Paradox of Value
An economic theory that explains why some necessities, such as water, are less expensive than non-essentials, like diamonds, despite their greater utility.
Standard Economic Model
A theoretical framework in economics that assumes individuals act rationally and seek to maximize utility, used to predict economic behavior and outcomes.
Grounded Theory
A research method that involves forming a theory based on data systematically gathered and analyzed.
Theory of Reasoned Action
A psychological theory that predicts an individual's behavior based on their intention, which is influenced by their attitudes and subjective norms.
Deductive Research
A research approach that starts with a theory or hypothesis and uses data to test it, often moving from general to specific.
Homo Economicus
A theoretical concept in economics that portrays humans as rational and self-interested agents who aim to maximize their utility.
Instrumental Value
The worth of something based on its ability to help achieve a desired end or goal.