Note3 - Cardinal Utility versus Ordinal Utility Cardinal...

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Cardinal Utility versus Ordinal Utility Cardinal numbers versus ordinal numbers Cardinal numbers are quantities, e.g., one, two , three, etc. Are the following cardinal or ordinal? ± page number ± temperature ± street number ± room number Is utility cardinal or ordinal? Cardinal utility: The consumer possesses a cardinal measure of utility, i.e., he is capable of assigning to every commodity or combination of commodities (i.e., bundle) a number representing the amount or degree of utility associated with it. The unit is called util. Ordinal utility: The consumer possesses an ordinal utility measure, i.e., he need not be able to assign numbers that represent the degree or amount of util- ity that he derives from commodities. His ranking of commodities is expressed mathematically by his utility function, which associates certain numbers with various quantities of commodities consumed, but these numbers provide only
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Note3 - Cardinal Utility versus Ordinal Utility Cardinal...

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