Exploring the Impossibility of Interpersonal Utility Comparison in Economics

Introduction

The concept of utility is central to economic theory, serving as a measure of satisfaction or pleasure derived from the consumption of goods and services. Economists have long grappled with understanding and quantifying utility to inform decision-making processes and resource allocation. However, the challenge of interpersonal utility comparison—comparing the utility levels of different individuals—poses significant philosophical and practical dilemmas. This paper will explore the impossibility of making such comparisons, discussing conceptual frameworks and empirical evidence that highlight the complexities and limitations surrounding this issue. Ultimately, the report aims to clarify why interpersonal utility comparisons are often deemed infeasible and to suggest implications for economic theory and practice.

Main Body

The dilemma surrounding interpersonal utility comparison can be traced back to the foundational work of economists such as Jeremy Bentham, who proposed that utility could serve as a basis for moral and policy decisions. Bentham’s utilitarianism su