In the previous post I tried to convince the reader that Theory of Games and Economic Behavior may be of some value even to a strict follower of the Austrian school. As one reader commented (thanks, Anthony!) Morgenstern was an Austrian himself. But does it mean everything he wrote is absolutely compatible with, say, Human Action of Ludvig von Mises?
The topic of today’s post is chapter 3: The Notion of Utility. Some people think that the stance on utility can quickly separate Austrians from adherents of other schools. And no, this is not as simple as just asking whether utility is cardinal or ordinal.
Test yourself on these questions, too. Continue reading