History Of Economic Thought II -- What is utility? Does it really make any sense to talk about utils and such? And is the utility concept useful? Economist Charles N. Steele explains how the Lausanne economist Vilfredo Pareto tackles these questions. Pareto demonstrates that the cardinality assumption isn't necessary for utility theory, and he shows how utility can be useful for economics. He also shows both the uses and the limits of positive economics for welfare analysis.

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