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I've gone back through this thread to clarify both the questions and my own 
thoughts.  John Womack had asked "Isn't this a circular definition of 
"utility"?That "utility" is anything for which a price is paid?" 
 
I think it is appropriate to note that my comment about self-evidence was 
in response to Bill William's question about "direct evidence" of utility 
and was not offered as a definition of utility.  Evidence and definition 
should probably be distinguished. 
 
I'm not sure anyone has offered a definition of utility in this thread.  A 
quick look at sources at hand provides the following definitions: 
 
"The ability of a product to satisfy a human want, need or desire." (The 
Dictionary of Real Estate Appraisal, 3rd Edition, Appraisal Institute, 
Chicago, IL 1993) 
 
In patent law, a requirement that an "invention performs some function that 
is of benefit to society."  (Black's Law Dictionary, 6th Ed. [U.S.]) 
 
"Utility theory explains consumer tastes and preferences." (SF Fed on-line 
glossary) 
 
"The level of enjoyment an individual attains from choosing a certain 
combination of goods" (Stiglitz's On-Line Glossary) 
 
My understanding and day to day use, which informs my comments, is that 
utility is an attribute or characteristic of a product or good which makes 
it beneficial or useful to an individual or a class (a market, society) and 
that the quality of utility is evidenced by the behavior of those 
beneficiaries.  Is that evidence direct?  Or direct enough to satisfy Bill 
William's definition of direct?  Bill will have to comment.  It seems that 
at the same time this quality of utility is a human perception and again 
the evidence is in human behavior. 
 
Of course the Appraisal Institute definition raises the sticky issue of 
satisfaction.  Does that mean sufficient to eliminate the want,  need or 
desire? In which case there would be no more demand and the good would no 
longer offer utility. From my perspective, it is easy enough to get lost in 
semantic debate over any of these points, but utility remains a useful 
construct in the day to day practice of valuation. 
 
Scott Cullen 
 
 
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