Re: Utility maximizing

["James R. Olson, jr." <jhavok@xxxxxxxx>]

At 09:31 PM 9/19/97 -0700, Chas Anderson wrote:
>Mason Clark wrote:
>>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.
>
>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.

Since there is no objective definition of utility, utility maximization is
axiomatic, in that the economic decisions of individuals are simply assumed
to be utility maximizing, no matter what they may be.

More sophisticated apologists for the axiom claim that individual decisions
are unimportant, that the aggregate of all decisions becomes utility
maximized through statistical effects.  This view purposely ignores all the
evidence for mass irrationality.