However, as the study of consumer demand theory progressed, economists realized that cardinal utility was both unlikely and unneeded. Ordinal utility, the ranking or preferences, was not only more realistic, it also provided a sufficient theoretical basis for analyzing the connection between utility and market demand.

Cardinal Utility

• Suppose, for example, that Winston Smythe Kennsington III is 72 inches tall and weighs 180 pounds. In contrast, Pollyanna Pumpernickel is 64 inches tall and weighs 100 pounds. Anyone can easily conclude that Winston is taller and heavier than Paula.

  However, these cardinal measures also make it possible to compare how much taller and heavier Winston is than Paula. In fact, Winston is 12.5 percent taller and 80 percent heavier than Paula.



• Now consider the height and weight of Barton Broadway, a hulking professional athlete, who is 81 3/4 inches tall and weighs 324 pounds. These cardinal measures indicate that Barton is 12.5 percent taller and 80 percent heavier than Winston. The proportional difference between Barton and Winston is exactly the same as that between Winston and Paula.

Unfortunately such cardinal measurement does not presently exist for utility. The theoretical prospects of generating such a measurement are also slight. Although early economists worked from the presumption that utility could be quantified with a cardinal measure similar that used for height and weight, the subjective nature of utility makes cardinal measurement unlikely.

Utility is inherently subjective. The satisfaction Pollyanna Pumpernickel obtains from eating a hot fudge sundae is based on her own personal wants and needs, her likes and dislikes. There is no way to compare her satisfaction with that received from an identical hot fudge sundae consumed by Winston Smythe Kennsington III or Barton Broadway.

There is no way to measure how much more or less satisfaction each person receives. Does Barton receive 12.5 percent more utility than Winston? Does Winston receive 12.5 percent more than Paula? Who can say?

Moreover, there also is no way to compare the satisfaction Paula receives from a hot fudge sundae versus watching Barton Broadway participate in his professional sporting pursuit. Does Paula receive 80 percent more utility from a hot fudge sundae than from watching Barton? Who can say?

Ordinal Utility

Suppose, for example, Pollyanna Pumpernickel, Winston Smythe Kennsington III, and Barton Broadway engage in a friendly footrace. Being a highly trained, well-conditioned athlete, Barton finishes first. The petite, but tenacious, Paula comes in second. Winston, hobbled by an old knee injury comes in third.

The ranking achieved by these three runners depends only on the order of their finish. It matters not how swiftly each one covers the distance.

• Suppose that Barton edges out Paula by the slimmest of margins for first place, while Winston finishes well behind.


• Or alternatively, suppose that Barton finishes well in front, while Paula edges Winston by the slimmest of margins for second place.


• Or lastly, suppose that each finishes the race at almost the same time, with Barton coming in just ahead of Paula, who is slightly in front of Winston.

Ordinal utility applies this ranking to preferences. In the modern analysis of consumer demand, the actual level of utility generated from the consumption of a good is irrelevant. Only the ranking of preferences is important.