<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Modern microeconomic theory is based on a foundation of ordinal preference relations. Good textbooks stress that cardinal utility functions are artificial constructions of convenience, and that economics does not attribute any meaning to “utils.” However, we argue that despite this official position, in practice mainstream economists rely on techniques that assume the validity of cardinal utility. Doing so has turned mainstream economic theorizing into an exercise of reductionism of objects down to the preferences of ‘ideal type’ subjects. </p></abstract>

Modern microeconomic theory is based on a foundation of ordinal preference relations. Good textbooks stress that cardinal utility functions are artificial constructions of convenience, and that economics does not attribute any meaning to “utils.” However, we argue that despite this official position, in practice mainstream economists rely on techniques that assume the validity of cardinal utility. Doing so has turned mainstream economic theorizing into an exercise of reductionism of objects down to the preferences of ‘ideal type’ subjects.

Ordinal Or Cardinal Utility: A Note

Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics Joseph A. Butt, S.J. College of Business Loyola University New Orleans, U.S.A.

Independent Scholar 3 Warblers Close Constantia 7806 South Africa

Studia Humana

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Ordinal Or Cardinal Utility: A Note"}

Modern microeconomic theory is based on a foundation of ordinal preference relations. Good textbooks stress that cardinal utility functions are artificial...

Ordinal Or Cardinal Utility: A Note

Data publikacji: 03 paź 2014

Zakres stron: 27 - 37

DOI: https://doi.org/10.2478/sh-2014-0003

Słowa kluczowe
Ordinal, cardinal, utility

© 2014

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Ordinal Or Cardinal Utility: A Note

Data publikacji: 03 paź 2014

Zakres stron: 27 - 37

DOI: https://doi.org/10.2478/sh-2014-0003

Słowa kluczoweOrdinal, cardinal, utility

© 2014

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
Ordinal, cardinal, utility