Question:

Economics utility question?

by Guest32583  |  earlier

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If Song were to be given a brand new set of skis, his utility would increase by 150 utils. If Whitney were to be given a brand new set of skis, her utility would increase by 30 utils. Therefore, Song would be happier with a new set of skis than Whitney.

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I want to say that Song would in fact be happier because the utils he will receive are going to be greater than the utils that Whitney would receive. However, can I compare Song's 150 utils to Whitney's 50 utils or are they on different scales? Does it make sense to compare these "utils" of two different people?

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  1. you cant compare because of individual tastes you can only compare utils on the same consumer.


  2. Excellent question and I'm glad you noticed the problem! You CAN'T compare the utility of two different people since the scales may be different. The "util" is simply a convenient economic way of analyzing the how a consumer views different consumption bundles. Since happiness is subjective there is no real way of obtaining an objective measurement so it is only useful when looking at the choices a single person faces.

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