Cardinal Utility in Welfare Economics and in the Theory of Risk-taking

  title={Cardinal Utility in Welfare Economics and in the Theory of Risk-taking},
  author={John C. Harsanyi},
  journal={Journal of Political Economy},
  pages={434 - 435}
  • J. Harsanyi
  • Published 1 October 1953
  • Journal of Political Economy
FROM most branches of economics the concept of cardinal utility has been eliminated as redundant since ordinal utility has been found to suffice for doing the job. Cardinal utility has been kept only in welfare economics to support the demand for a more equal income distribution. Recently, however, the concept of cardinal utility has been introduced also in the theory of choices involving risk.1 The question naturally arises whether the concepts of cardinal utility used in these two parts of… 
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