utility

yoo-TIL-uh-tee /juːˈtɪl.ə.ti/
nounB2GREGMATSATCAT
generalacademicbusiness

The state of being useful, profitable, or beneficial; in economics and philosophy, a measure of total satisfaction or well-being.

In formal academic usage, utility is a quantifiable measure of well-being or preference satisfaction.

The story behind the word. From Latin 'utilitas' (usefulness), from 'utilis'. It entered Middle English through Old French 'utilite'. Philosophers and economists adopted it in the 18th century as the baseline metric for human satisfaction.

Word relationships

  • usefulness: Usefulness is informal and qualitative, whereas utility in formal contexts is often quantified.
  • uselessness: The state of having no practical value or benefit.

Commonly confused with

  • futility: Futility means complete pointlessness or uselessness, which is the exact opposite of utility.

Word family

  • utilize (verb): To make practical and effective use of
  • utilitarian (adjective): Designed for utility or prioritizing usefulness

Collocations

  • marginal utility
  • expected utility
  • maximize utility
  • utility function

Example sentences

  • "In decision theory, expected utility is calculated by multiplying the value of each outcome by its probability." Decision Theory

Memory hook

UTILity = how USEFUL an outcome is to human happiness. The currency of happiness and welfare.

When not to use

Avoid confusing philosophical/economic 'utility' with a municipal 'public utility' company without setting the context.

Fun facts

  • 19th-century economists proposed a theoretical unit called the 'util' to measure happiness, though modern economics relies on ordinal preferences instead.
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