Preference (economics)
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In economics, and in other social sciences, preference refers to an order by which an agent, while in search of an "optimal choice", ranks alternatives based on their respective utility. Preferences a
A simple example of non-satiated preference, in which a large number of oranges are preferred to a single orange.
Rational choice model
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Rational choice modeling refers to the use of decision theory as a set of guidelines to help understand economic and social behavior. The theory tries to approximate, predict, or mathematically model
Preference (economics)
…role in many disciplines, including moral philosophy and decision theory. The logical properties that preferences possess also have major effects on rational choice theory, which in turn affects all modern economic topics. Using the scientific method, social scientists aim to model how people make practical decisions in…
Daniel Kahneman