Preference (economics)
In economics and other social sciences, preference refers to the set of assumptions related to ordering some alternatives, based on the degree of happiness, satisfaction, gratification, enjoyment, or utility they provide, a process which results in an optimal "choice" (whether real or theoretical). Although economists are usually not interested in choices or preferences in themselves, they are interested in the theory of choice because it serves as a background for empirical demand analysis.
Read more about Preference (economics): History, Basic Premises, Applications To Theories of Utility, Strict Versus Weak, Agreggation, Expected Utility Theory, Criticism
Famous quotes containing the word preference:
“He that has his chains knocked off, and the prison doors set open to him, is perfectly at liberty, because he may either go or stay, as he best likes; though his preference be determined to stay, by the darkness of the night, or illness of the weather, or want of other lodging. He ceases not to be free, though the desire of some convenience to be had there absolutely determines his preference, and makes him stay in his prison.”
—John Locke (1632–1704)