Re: Utility maximizing

["Chas Anderson" <cnanderson@xxxxxxxxxxxxxxxx>]

>
>   "Utility Maximizing" -- consumers will so act.  Guided by Joe Camel
>   and O.J. running through the airline terminal. Who defines "utility"?
>   And what is "maximized" when tons of weight-loss drugs and addictive
>   nicotine products are consumed -- profits or utility? If in fact,
utility
> and
>   the maximizing thereof are socially destructive, what does this say
>   about the validity of an economic theory based on such a "most common
>   theory"  wherein the growth of such destruction is made the criterion
of
>   economic success.
>
>             Mason  (incorrigible heal-nipper)
> --------------------------------------------------------
Mason:

The principle of utility maximization is a method of explaining the
rationality behind the process of consumer choice. The fact that you (or I)
may disagree with a market outcome does not negate the fundamental logic
behind this principle. Your argument is with the taste and preferences of
certain consumers which YOU consider to be irrational (socially
destructive) not with the guiding logic behind these decisions. I believe
the validity of a theory is based on its ability to explain and predict
economic behavior, that is, to help understand the "what-is" of economic
behavior.  At this point, utility theory still predominates.

Chas Anderson