Cardinal Utility - Controversies

Controversies

Some authors have commented on the ambiguity of the terms "cardinal utility" and "ordinal utility", as used in economic jargon:

These terms, which seem to have been introduced by Hicks and Allen (1934), bear scant if any relation to the mathematicians' concept of ordinal and cardinal numbers; rather they are euphemisms for the concepts of order-homomorphism to the real numbers and group-homomorphism to the real numbers

—John Chipman, The foundations of utility

There remain economists who believe that utility can be measured. These measures are not perfect but can act as a proxy for the utility. Lancaster's characteristics approach to consumer demand illustrates this point.

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