crispybits wrote:The problem I have with the assertion is that we have no real way to define well-being (despite it being the first thing the speaker attemtped to counter)
Or, using the assertion we can say that the best holiday choice is the one that most increases well being, but how do you measure the difference between 7 days spent lounging on a beach in the sun and 7 days hiking in the woods if I enjoy both equally and both have equal overall impacts on others? They are 2 different realities with different benefits and drawbacks in a multitude of different ways but does it simply come out as the moral equivalent of 100 pounds (UK) and 150 euros - the same value in financial power in different forms?
One can simply say, "at this time, it's most likely that I am enjoying these days on the beach. Seven days in the woods might have been better, but I'm really enjoying this
more." Individually, we can compare imagined states of well-being with actual states of well-being. Some time after the beach, we might experience an opportunity loss: "I should've went to the woods instead, I imagine it would've been better," but we can still subjectively measure states of well-being accurately enough if we update enough. ("Next time, I'll try the woods and see if I really would like it more").
Before the decision, you had that choice between the beach and the woods, but you chose the beach; therefore, you valued the beach moreso than the woods. To this extent and in this circumstance, we know that this is true. Whatever one chooses at a time before the activity, we assume that choice is expected to yield the greatest value. This assumption cuts through a lot of nonsense.
With prices, we can more accurately compare the imagined expected values of each activity. When you pay the price, you incur the opportunity cost, so you best be sure you enjoy what you've chosen--compared to the alternative. If you pay $300 for a trip to the beach, it means that you expect to yield the greatest value at the beach instead of from some other $300 good.
These hold only at the individual level. The main problem is "interpersonal comparisons of utility/value." Science can't do that accurately. Neoclassical economics 'can'--but only by sleight of hand (e.g. by assuming that people's utility functions, thus preferences, are homogeneous--i.e. everyone has the same tastes). It's a heroic assumption which misleads people into fallaciously supported policies.