Quantifying a Utility Difference in Grain
To illustrate how utility differences can be measured in physical units when indifference curves are vertically parallel, consider two allocations, Y and Z. If Angela prefers allocation Z, the utility gain over Y can be quantified. For instance, her preference for Z might be equivalent to 17 bushels of grain. This means that the additional satisfaction she gets from choosing Z is the same as the satisfaction she would get from receiving an extra 17 bushels of grain at allocation Y.
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Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
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Quantifying a Utility Difference in Grain