The function that represents utility of a product according to its preference, but does not provide any numerical figure, is known as an Ordinal Utility. Therefore, it cannot be measured in quantifiable terms. The ordinal theory is highly subjective and differs across individuals. According to the ordinal approach, utility is a psychological phenomenon like happiness, satisfaction, and welfare. Allen 1930 argued that the consumer behavior theory should be introduced based on Ordinal Utility. Two English economists, John Hicks and R.J. Ordinal Utility states that the satisfaction a consumer gets after consuming a good or service cannot be scaled in numbers, whereas, these things can be arranged in the order of preference. Read the article below to understand the difference between Cardinal Utility and Ordinal Utility. On the other hand, Ordinal Utility expresses the utility of a commodity in terms of more than or less than. This concept is termed a Cardinal Utility. Many traditional economists proposed a view that utility is measured quantitatively like length, height, weight, temperature, etc.
The two primary theories for utility are Ordinal Utility and Cardinal Utility. The measurability of utility is always a controversial subject.
It differs from person to person, as it relies on a person's mental attitude. Utility is a physiological fact that implies the wanting the satisfying power of a good or service.
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