Econ 101: Utility — It’s Personal, It’s Complicated, and It Depends

Utility is a 19th century microeconomic concept used to measure consumer satisfaction.  Satisfaction is personal and subjective; it cannot be measured directly.  Utility measures it indirectly by asking consumers to assign numbers to different levels of satisfaction they believe they would experience if they consumed a product or service.  The reason economists bother with a…

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Irrational? You talkin’ to me?

The market can stay irrational far longer than you or I can remain solvent.  John Maynard Keynes By golly,  the hearing aid market may be a bit irrational right now. “Irrational” in Economic-Speak means that consumers are making choices which are not maximizing their self-interest, probably because said consumers lack sufficient information to make informed…

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