<p>In all of economics that I know, people maximize their Utility $U_i=f(x_1,...,x_n)$, and therefore make some kind of cost-benefit analysis.</p>

<p>One obvious criticism to this model is that we often do not have the right information on the $x_k$ (it is hard to have a parameter for altruism for instance).</p>

<p>But except from that, is this formalism  irrefragable ? Or are they theoretical limitations, situations that it cannot account for ? </p>

<p>I would gladly accept any thought or reference on the subject</p>

CC BY-SA 3.0
2016-03-14T19:14:16.103Z
What do you mean by "we often do not have the right information on the $x_k$"? Does this refer to the analyst or the decision-maker?
Oliv
CC BY-SA 3.0
2016-03-14T19:19:41.127Z
I am trying to ask in a broad epistemologic way, to wonder about economics paradigm. In various cases I guess neither one or the other have this information.
Anthony Martin
CC BY-SA 3.0
2016-03-20T23:58:26.650Z
A utility function is just an objective that the economic agent has. If he is altruistic, you can put that into the utility function. As long as people concioously behave according to some goals, usually you shouldn't have a problem putting it into a utility function.
BB King
CC BY-SA 3.0
2016-03-21T10:32:45.617Z
Is consciously a reserve ? Cant you just put biases or things like that it in the utility function ? Like Kahneman-Tversky related work in behavioral economics ?
Anthony Martin
<utility><theory>
Limits of utilitarianism?
Anthony Martin
# Limits of utilitarianism?

(Asked by: username_0 on 2016-03-14)

In all of economics that I know, people maximize their Utility $U\_i=f(x\_1,...,x\_n)$, and therefore make some kind of cost-benefit analysis.

One obvious criticism to this model is that we often do not have the right information on the $x\_k$ (it is hard to have a parameter for altruism for instance).

But except from that, is this formalism irrefragable ? Or are they theoretical limitations, situations that it cannot account for ?

I would gladly accept any thought or reference on the subject

**Tags:** utility, theory

> **Comments:**
> **username_1**: What do you mean by "we often do not have the right information on the $x_k$"? Does this refer to the analyst or the decision-maker?  
> **username_0**: I am trying to ask in a broad epistemologic way, to wonder about economics paradigm. In various cases I guess neither one or the other have this information.  
> **username_2**: A utility function is just an objective that the economic agent has. If he is altruistic, you can put that into the utility function. As long as people concioously behave according to some goals, usually you shouldn't have a problem putting it into a utility function.  
> **username_0**: Is consciously a reserve ? Cant you just put biases or things like that it in the utility function ? Like Kahneman-Tversky related work in behavioral economics ?  

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## 0 answers

