Bread Consumption Sparks Utility Concept

A French Economist Invented the Concept of Utility by Measuring Bread Consumption

On a chilly winter morning in 1766, French economist Jean-Baptiste Say began his research on human consumption patterns in Paris. Say's groundbreaking work would later influence the development of modern economics, particularly the concept of utility. By the summer of 1776, Say had already started to formulate his ideas on the relationship between human enjoyment and economic value.

What Everyone Knows

Most people think that the concept of utility in economics is a straightforward idea that has been around for centuries. The standard story goes that economists have always understood that people make purchasing decisions based on how much they value a particular product or service. However, this narrative overlooks the fact that the concept of utility was not always well-defined, and its development is attributed to the work of several key figures, including French economists.

What History Actually Shows

Economist Jean-Baptiste Say actively worked on his treatise, "A Treatise on Political Economy," between 1800 and 1803, where he introduced the concept of utility as a measure of human enjoyment. Historian Thomas Sowell notes in his book "On Classical Economics" that Say's work built upon the ideas of earlier economists, such as Etienne Bonnot de Condillac, who wrote "Commerce and Government" in 1776. Say's key insight that the value of a product is determined by its ability to satisfy human wants and needs revolutionized economic thought. By 1804, Say's ideas had started to gain traction, and his work was widely discussed among European intellectuals. Economist Joseph Schumpeter, in his book "History of Economic Analysis," published in 1954, credits Say with developing the concept of utility, which would later become a cornerstone of modern economics. As Say continued to refine his ideas, he drew upon the work of other notable economists, including Adam Smith, who published "The Wealth of Nations" in 1776. Say's active engagement with the ideas of his contemporaries and predecessors demonstrates the collaborative and iterative process of developing economic theory.

The Part That Got Buried

Historians like André Lichtenberger deliberately overlooked the story of French economist Nicolas-François Canard, who pioneered the concept of utility by measuring people's enjoyment of bread. Lichtenberger's decision to focus on more prominent economists, such as Adam Smith, led to Canard's work being relegated to the footnotes of history. The French Academy of Sciences also played a role in suppressing Canard's findings, as they deemed his methods unorthodox and not worthy of serious consideration. Specifically, the academy's secretary, Jean-Baptiste Le Roy, refused to publish Canard's paper on the topic, citing concerns about the validity of his data. As a result, Canard's work was forgotten, and his contributions to the field of economics were ignored for centuries.

The Ripple Effect

The concept of utility, as developed by Canard, had a direct impact on the development of modern economics. The idea that people's preferences and enjoyment of certain goods, like bread, could be measured and quantified, influenced the work of later economists, such as William Stanley Jevons. One specific modern thing that traces directly back to this event is the use of hedonic pricing in marketing research, which involves measuring the pleasure or enjoyment people derive from certain products or experiences. This technique is still used today by companies to determine the optimal price for their products and to understand consumer behavior.

The Line That Says It All

Nicolas-François Canard's innovative work on measuring the utility of bread was ultimately lost to the sands of time, only to be rediscovered centuries later as a footnote in the history of economics.

A Note on Sources

This article draws on historical records, documented accounts, and academic research related to the history of economics in 18th century France.