Quarterly Journal of Austrian Economics

The Modern Theory of Consumer Behavior: Ordinal or Cardinal?

The Quarterly Journal of Austrian Economics
Downloads

 

Volume 6, No. 1 (Spring 2003)

 

Neoclassical utility functions are an invalid means of analyzing consumer behavior for three reasons: first, and most important, because such functions, and their attendant rankings, are cardinal, not ordinal in nature; second, because, with respect to the set of bundles relevant to actual human beings, such functions are not continuous and, therefore, not differentiable; and third, because such functions do not correctly, consistently, and properly include dimensions/units.

CITE THIS ARTICLE

Barnett, William II. "The Modern Theory of Consumer Behavior: Ordinal or Cardinal?" The Quarterly Journal of Austrian Economics Quarterly 6, No. 1 (Spring 2003): 41-65.

 

 

All Rights Reserved ©
Support Liberty

The Mises Institute exists solely on voluntary contributions from readers like you. Support our students and faculty in their work for Austrian economics, freedom, and peace.

Donate today
Group photo of Mises staff and fellows