Austrians, what is "utility" exactly?

Economist In Training:

Tautologies need not be considered empty.

24 = 2 x 12 = 4 x 6 = 3 x 8 is tautological. But three groups of eight is not immediately apparent upon an apprehension of twenty four.

Logical or tautological reasoning fleshes out the implications of given suppositions, and these implications are important for action and life.

Aprioristic reasoning is purely conceptual and deductive. It cannot produce anything else but tautologies and analytic judgments. All its implications are logically derived from the premises and were already contained in them. Hence, according to a popular objection, it cannot add anything to our knowledge.

All geometrical theorems are already implied in the axioms. The concept of a rectangular triangle already implies the theorem of Pythagoras. This theorem is a tautology, its deduction results in an analytic judgment. Nonetheless nobody would contend that geometry in general and the theorem of Pythagoras in particular do not enlarge our knowledge. Cognition from purely deductive reasoning is also creative and opens for our mind access to previously barred spheres. The significant task of aprioristic reasoning is on the one hand to bring into relief all that is implied in the categories, concepts, and premises and, on the other hand, to show what they do not imply. It is its vocation to render manifest and obvious what was hidden and unknown before. (Human Action)

Like I said.

When you discuss “believes,” “desires,” and “prefers,” you are smuggling in psychological terms. These terms are subject to the purview of that science and its more fundamental counterpart, neuroscience. These natural sciences can and do measure brain activity that correlates to emotion and thought. These terms (e.g., desire) cannot simply be understood in some sort of superficial, commonsense manner; they demand rigorous explanation.

So, nobody denies otherwise. This has no bearing on my argument. But, it’s a question of measuring something which is not even created on an objective standard; pleasure, or satisfaction, is something completely subjective to that particular brain, based on consistently different metrics (or, the unbounded, shifting metric of human creativity). Furthermore, even if you could measure how much the brain reacts to the consumption of Good A, the brain is unaware of this exact reaction when making the decision, and so measure ex post facto is inconsequential to the present debate (and, given the unbounded, shifting nature of human creativity, I willing to bet that no two reactions will be the same).

You are failing to understand the nature of what we’re discussing.

If one concedes that the brain is a decentralized network–that is, there are separable modules regulating behavior–then one can more easily understand how one’s “preference” might not translate into observable behavior (that is, revealed-preference theory could be falsified). To claim one always likes what one wants is to view the brain as a very simple mechanism, whereas contemporary neuroscience challenges that. There are alternative hypotheses available, and the question won’t be settled by deductive tautologies.

To claim one always likes what one wants is to view the brain as a very simple mechanism, whereas contemporary neuroscience challenges that.

Another misunderstanding. One wants what one perceives to like.

StrangeLoop wrote:

Adam Knott, go for it.

As you may have guessed, I am a thoroughgoing naturalist.

Adam Knott wrote:

Done

I wasn’t talking to you.

Because we understand them.

You haven’t demonstrated any competency with Austrian concepts, so your attempts to undermine them never amount to much.

And what, a centralized network can’t have separable modules?

A political central authority, which is the mother of all central networks, has not only separate modules but also competing modules. competing for power and control. Actually, kind of like your brain!!

Who even claims such nonsense?

Just more insults? Nice.

Frankly, it’s obvious you never, ever engage in any high-level discussions here; you simply cheerlead for more-capable debaters.

No, preference is defined as whatever the actor believes will satisfy his desires better; he prefers things over others, because they have higher utility.

That’s still pretty unenlightening. And to the extent that it isn’t it’s because you’re invoking some psychological terminology about utility, where it actually corresponds to something in the real world. If you want to stick to that definition, you can but as has been pointed out, it’s since been falsified.

Do you understand the concept of ordinal versus cardinal utility

Yes, I do. I think the assumption of ordinal utility is fine, when there is no way to conceivably measure utility, but according to the research provided by StrangeLoop, those days are over.

"Yes, I do. I think the assumption of ordinal utility is fine, when there is no way to conceivably measure utility, but according to the research provided by StrangeLoop, those days are over. "

As a neo-classical, Im sure Strange Loop can provide all kind of researchers proving all kind of different views.

Utility is subjective, I don’t want to sound dogmatic, but nothing will really change that.

That doesn’t immediately exclude objective means of measuring it (much like low serotonin is used to measure depression).

Oh, sure. We can also check how big is the smile of the person to see how happy he/she is, we already do that when we give a gift. But so what? Every individual will have a different level of satisfaction, so the utility will always rely on the subject, it doesn’t exist per se.

You don’t believe utility exists?

Furthermore, the notion that “utility will always rely on the subject” does nothing to undermine the notion that it is also objectively measurable (or at least some version of it, like dopaminergic reward circuitry).

Soon they’re going to find hapiness chemicals and signals in your brain. We need to pre empt this by switching our criticism of utility from “you can’t measure utils” to “physical utils are morally insignificant”.

I don’t believe that utility is inherent to the product/tool, as it was some kind of platonic spirit of the object. Utility comes to existence when there is someone with the will/desire to utilize this certain object. So maybe you can measure the utility of something in some meaningful way, but it will only be meaningful concerning to a specific indivudal, therefore quite useless to make some generalization.

In the same sense addition “doesn’t exist,” yes. Utility is an abstract idea used to assess human decisions. It doesn’t need to be tied down to a measurable quantity to be useful.

Strangeloop

Briefly, How do you feel measurement of personal utility would change economics? Policy?

How do you feel measurement of interpersonal utility would change economics? Policy?

Essentially, I believe Austrian economics are excluding neuroscience to their own disadvantage. For example, when Austro-libertarians claim that public goods have been historically developed without State intervention (despite game-theoretic conclusions), then undergirding those facts with appeals to human neurobiology (e.g., other-regarding preferences, emotions, etc.) would buttress the case for anti-statism much more powerfully.

Furthermore, Austrians must realize that all valuational processes (even when called subjective) necessitate brains. There is no avoiding that; consequently, one could plunge into neuroscience, or one could back away and rely on proxy measures for utility (e.g., observed choice, facial expressions, etc.). Let’s be honest here: revealed-preference theory is a way to measure utility, so Austrians measure utility, too (I am merely advocating more direct means of doing so).

How does a brain generate value? How does a brain produce behavior? Are these processes separable (e.g., can want be detached from like?)?

Even revealed-preference theory is individual-specific.