## Why can't utility be traded? 💱🚫 Economists say that utility can't be traded because utility is a subjective measure of satisfaction, happiness, or well-being that an individual derives from consuming a good, service, or making choices. It is an abstract concept that can't be directly observed, quantified, or compared between individuals. Here are a few reasons why utility cannot be traded: #### Subjectivity: Utility is based on individual preferences, which can vary greatly from person to person. What one person finds valuable might not have the same worth to another person. This subjectivity makes it difficult to establish a common ground for trading. #### Interpersonal comparison: As utility is inherently subjective, it is difficult to compare the satisfaction or happiness that two different people derive from consuming the same good or service. Since there is no common unit of measurement, it is impossible to objectively determine how much utility should be traded between individuals. #### Non-transferability: Utility is an individual's internal experience, and it cannot be physically separated from the person experiencing it. As a result, it is impossible to transfer utility directly from one person to another. #### Incomplete information: People often don't have complete information about their own preferences or the preferences of others, which makes it difficult to engage in trade based on utility. #### Non-rivalrous and non-excludable: Utility derived from consuming a good or service is non-rivalrous and non-excludable, meaning that one person's consumption of the good doesn't diminish the utility available to others, and no one can be excluded from experiencing utility. Since utility is not a scarce resource, there is no need to trade it. Although utility itself can't be traded, the goods and services that generate utility can be exchanged in markets. People engage in trade to maximize their own utility, based on their preferences and the prices of goods and services.