On Utils

The idea of utils is a bit tricky because it is a subjective unit and thus variably defined, but I think we can conceive of them in a substantive way. Specifically, I would measure a util as the marginal productivity of consumption, where consumption produces by means of bringing an individual closer to realization of some goal or basket of goals.

Under this framework, suppose we know an individual has only the objective of arriving at work as quickly as possible. We can then say that his choice to purchase a car rather than a bike is a choice made under cardinal preference, and simultaneously revealing an ordinal preference. This approach allows us to more effectively engage in counterfactual thinking. Suppose a regulation is passed the next day such that cars may only travel at 10 mph. Through Rothbardian demonstrated preference we have no a priori grounds to suppose this individual would prefer the bike to the slow car, we can only recognize such preference a posteriori.