The Evolution of the Utility Function: Enhancing Economic Rationality and Improving the Objectivity of Microeconomic Analysis Tools

Abstract

This study reflects the need to understand the development of the utility function and its role in enhancing economic rationality and improving the objectivity of microeconomic analytical tools. The study aims to explore how economic and psychological factors influence economic decision-making, as well as to analyze participants' opinions on the importance of developing analytical tools and the utility function. A descriptive approach was employed, with the study population consisting of individuals from various economic backgrounds, totaling 200 participants. A sample of 100 individuals was selected randomly. The study yielded several key findings, notably that 50% of participants believe that economic factors significantly impact decision-making, while 70% consider improving microeconomic analytical tools to be very important. Additionally, 85% of participants support the need to develop the utility function to align with contemporary social and psychological changes. The study recommends enhancing economic knowledge among individuals and developing analytical tools to meet modern market needs, which would contribute to improving the effectiveness of economic decisions. This study makes an important contribution to understanding the challenges faced by economic decision-makers and identifying strategies that can help improve the decision-making process.