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Economics

Utility Theory

Quick fact

The term 'utility' was popularized by the philosopher Jeremy Bentham, who believed that all human actions are motivated by the pursuit of pleasure and avoidance of pain—a principle still central to modern utility theory.

Why this is interesting

Every day you make countless choices—what to eat, which route to take, whether to work or relax. Did you know economists can model these decisions using a simple idea called 'utility'?