Sunday, December 14, 2014

Ersatz Utility and Rationality

Ersatz Utility diverges from Marginal Utility by denoting the values of not only useless items, but harmful ones, as well.  For, it cannot be denied that people regularly purchase e. g. cigarettes and junk food, regardless of warnings of their unhealthfulness.  Now, while there are various theories of such behavior, e. g. weakness of the will, inadequate ideas, etc., what they have in common is that such conduct is less than fully rational.  Hence, those examples expose a significant flaw in not only Marginalism, but in many Economic models--the premise of Rational behavior, i. e. that people always act in their best self-interest.  For, the inattention of those  models to self-destructive behavior, betrays not merely an inattention to empirical detail, but a moral indifference to the distinction between Wealth and Well-Being that is only amplified by Mill's feeble attempt to contrast 'high' from 'low' pleasures.  Indeed, the regular incitement to shopping frenzy, e. g. 'Black Friday' in America, illustrates the significant contribution to the wealth of a nation that Ersatz Utility can offer.

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