Experimental Verification of a Composite Indifference Map

T HE theory of subjective value, as formulated by J. R. Hicks and R. G. ID. Allen,' sought to remove the theory of consumers' demand from its dependency on the quantitative measurement of utility. This new subjective approach is a great improvement in value theory; nevertheless, there has been a great deal of discussion and controversy over the merits of the Hicksian improvements. The argument against the Marshallian type of value theory centered about the contention that utility (satisfaction) could not be cardinally measured. The new subjective theory of value, as expounded by J. R. Hicks, circumvented this difficulty simply by stating value relationships in ordinal terms. The problem immediately raised was whether the modern theory of subjective value was, in fact, a substantial improvement over the old utility theory or only the same old theory dressed up to look new.2 It has been said, with a great deal of merit, that the indifference-curve approach (I) ties in better with contempo-