
Basic Utility Theory Used in Shepsle and Bonchek
A Utility Function is centered at the individual's
ideal point -- "C" in the figure below.
Given two alternatives, Oy and On, the individual
picks the alternative for which she has the greatest
utility:
if U(Oy) > U(On), she chooses (votes for) Oy
if U(On) > U(Oy), she chooses (votes for) On
