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Evolution and Theoretical Implications of the Utility Concept

Author

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  • Di Foggia, Giacomo
  • Arrigo, Ugo
  • Beccarello, Massimo

Abstract

We review the evolution of the concept of utility in economics, addressing the conceptual and terminological fragmentation that characterises the interdisciplinary debate. This study adopts the scoping review framework to systematically analyse the main theoretical approaches, ranging from utility as preference to utility as subjective satisfaction and well-being. Particular attention is paid to procedural utility, i.e., the utility derived from the way decisions are made and interactions develop, divided into three areas: individual, linked to autonomy and self-determination; interpersonal, related to the quality of social relations; and institutional, referring to participation and recognition. The analysis is based on three aspects: (i) how different theoretical traditions have interpreted utility and well-being; (ii) what convergences and divergences emerge in the contemporary literature; (iii) and what implications these factors have for research and public policy. We highlight the complementarity between approaches and suggest extending economic reflection to dimensions that are central to the well-being of individuals and societies. The insights of this study have public policy implications, indicating that, through well-defined institutions, distributive justice, and welfare systems, taxpayers’ hedonic utility can be transformed into the chrematistic utility of beneficiaries.

Suggested Citation

  • Di Foggia, Giacomo & Arrigo, Ugo & Beccarello, Massimo, 2025. "Evolution and Theoretical Implications of the Utility Concept," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(10).
  • Handle: RePEc:zbw:espost:327720
    DOI: 10.3390/economies13100283
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    References listed on IDEAS

    as
    1. Layard, R. & Mayraz, G. & Nickell, S., 2008. "The marginal utility of income," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1846-1857, August.
    2. Alexander W. Cappelen & Karl O. Moene & Erik Ø. Sørensen & Bertil Tungodden, 2013. "Needs Versus Entitlements—An International Fairness Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 574-598, June.
    3. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
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    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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