axioms of utility

Axioms of utility are fundamental principles in decision theory that assume individuals have consistent preferences when choosing between options. They imply that choices are rational and can be summarized using a utility function, which assigns a measurable value to each option. The core axioms include completeness (every pair of options can be compared), transitivity (preferences are consistent across choices), and independence (preferences between options remain consistent when mixed with a third option). These principles help economists and researchers model and predict decision-making behavior under uncertainty, assuming people aim to maximize their overall satisfaction or utility.