Crusoe discovers that another man, named Friday, is stranded on the same island. Friday, of course, has his own value scale, subject to all the principles (such as the law of diminishing marginal utility) that we have discussed. Friday's specific rankings, however, may vary from those of Crusoe because of differences in both his circumstances and his psychological traits. At present, munching on coconuts offers higher subjective utility than any other action to Friday, whereas this alternative ranks only third on Crusoe's value scale. Crusoe's value scale is inferred from observations of Crusoe's actions, while Friday's scale derives from observations of Friday's actions.  |
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Crusoe
 complete tree house
hunt for food
munch on coconuts
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Friday
munch on coconuts
start tree house
go for a swim
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