Utility theory: analysis of consumer behavior in terms of risk

Consumer behavior under risk is analyzed from the utility theory point of view. The problems occurring in the sphere of business entities’ economic behavior modelling are pointed out, in particular, concealment of income and tax evasion. The situation of normative-descriptive dualism is outlined, which is manifested in the contradictions of theoretical predictions with revealed empirical facts. Potential ways to overcome the inconsistency are identified.