Pareto's contribution to utility theory

Abstract

Vilfredo Pareto's contribution to modem economic theory is today universally recognized, but to my mind his particular contribution to utility theory is not sufficiently understood. In the following paragraphs I intend to give an assessment and evaluation of Paretian thought on this important topic. It seems that Pareto' s contribution to utility theory originated as a reaction to the attitude of Walras and the Austrian School of.Economists to this same theory. The latter thought that utility theory, as they understood it, was a sort of ultimate truth, a key to all the secrets of pure economics. Consequently they placed such an emphasis on it that they induced Pareto and the Paretians to do their best to demolish it. Such was their eagerness that some even held that this departure constituted Pareto's main contribution to economic theory.