The concept of marginal utility grew out of attempts by economists to explain

The concept of marginal utility grew out of attempts

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Richard Whately Anne Robert Jacques Turgot , in Réflexions sur la formation et la distribution de richesse (1769), held that value derived from the general utility of the class to which a good belonged, from comparison of present and future wants, and from anticipated difficulties in procurement. Like the Italian mercantists, Étienne Bonnot, Abbé de Condillac , saw value as determined by utility associated with the class to which the good belong, and by estimated scarcity. In De commerce et le gouvernement (1776), Condillac emphasized that value is not based upon cost but that costs were paid because of value. This last point was famously restated by the Nineteenth Century proto- marginalist, Richard Whately , who in Introductory Lectures on Political Economy (1832) wrote It is not that pearls fetch a high price because men have dived for them; but on the contrary, men dive for them because they fetch a high price. [30] (Whatley's student Senior is noted below as an early marginalist.) Marginalists before the Revolution [ edit ] Gabriel Cramer The first unambiguous published statement of any sort of theory of marginal utility was by Daniel Bernoulli , in “Specimen theoriae novae de mensura sortis”. [31] This paper appeared in 1738, but a draft had been written in 1731 or in 1732. [32] [33] In 1728, Gabriel Cramer had produced fundamentally the same theory in a private letter. [34] Each had sought to resolve the St. Petersburg paradox , and had concluded that the marginal desirability of
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