There are following points about Utility theory
- Defines axioms on preferences that involve uncertainty and ways to manipulate them.
- Uncertainty is modeled through lotteries
[ p : A;(1 − p) : C]
- Outcome A with probability p
- Outcome C with probability (1-p)
- The following six constraints are known as the axioms of utility theory. The axioms are the most obvious semantic constraints on preferences with lotteries