----------------- HES POSTING ----------------- 
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 
 
 
------------ FOOTER TO HES POSTING ------------ 
For information, send the message "info HES" to [log in to unmask]