Measuring Utility

Author:

Moscati Ivan

Abstract

The book reconstructs the history of utility measurement in economics, from the marginal revolution of the 1870s to the beginning of behavioral economics in the mid-1980s. Part I covers 1870–1910 and discusses the issue of utility measurement in the theories of Jevons, Menger, Walras, and other early utility theorists. Part II deals with the emergence of the notions of ordinal and cardinal utility during 1900–1945 and discusses two early attempts to give an empirical content to the notion of utility. Part III focuses on the 1945–1955 debate on utility measurement originated by von Neumann and Morgenstern’s expected utility theory (EUT). Part IV reconstructs the experimental attempts to measure the utility of money between 1950 and 1985 within the framework provided by EUT. The book does four main things. First, it reconstructs in detail economists’ ideas and discussions about utility measurement from 1870 to 1985 and their attempts to measure utility empirically. Second, it brings into focus the interplay among the evolution of utility analysis, economists’ ideas about utility measurement, and their conception of what measurement in general means. Third, it explores the hitherto underresearched relationships among the history of utility measurement in economics, the history of the measurement of sensations in psychology, and the history of measurement theory in general. Finally, it discusses some methodological problems related to utility measurement, such as the epistemological status of the utility concept and its measures. The book closes with a brief overview of post-1985 research trends in utility measurement.

Publisher

Oxford University Press

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