What does 'subjective utility' analyze?

Subjective utility refers to the value that an individual assigns to an outcome or object based on their personal preferences, experiences, and perceptions. This concept acknowledges that different people may perceive the same object or situation very differently, leading to varying assessments of value.

Unlike traditional utility which is often measured in more objective terms, subjective utility is grounded in the individual's emotional and psychological responses. For instance, a piece of art may be perceived as highly valuable by one person due to a personal connection or aesthetic appreciation, while another might see it as having little worth.

The focus of subjective utility is on the individual’s unique perspective, rather than a universally agreed-upon measurement of value. This allows for a richer understanding of decision-making processes as people weigh potential outcomes based on their own subjective experiences and preferences, rather than solely on quantifiable metrics.