The Atkinson Index evaluates income inequality while considering the distribution's shape. It assumes individuals care about inequality. It assumes diminishing marginal utility of income. It assumes equal weights on each person. These assumptions drive its formulation and interpretations. Critics debate these foundational assumptions. They question their real-world accuracy and applicability. Despite criticisms, the Atkinson Index remains widely used. Policymakers and researchers find it valuable for understanding inequality trends. Its simplicity and focus on distributional shape make it accessible. By highlighting inequality dynamics, it sheds light on social and economic disparities. The Atkinson Index is a powerful tool for analyzing income distribution and guiding policy decisions.