The measurement of utility and subjective probability. A proposal for the operationalization of rational choice theory

Abstract

To date only a small number of direct applications of rational choice theory (RCT) can be found in empirical social research. In order to faciliate such empirical applications an elaborate proposal for the measurement and operationalization of central RC-variables is presented. The paper focuses on the measurement of utility and subjective probabilities, which in turn enable a direct empirical assessments of SEU-values. The measurement methodology and its result are discussed using an empirical study on the adoption of organic farming as an example.