Austrian economists differ with the economic mainstream in many ways, but the break on utility theory is especially critical ...

The present work takes place in the framework of a non-expected utility model under risk: the RDEU theory (Rank Dependent Expected Utility, first initiated by Quiggin under the denomination of ...

The law of diminishing marginal utility says that as a consumer uses more and more of something, each additional unit provides less benefit. In other words, the marginal utility gets smaller.

Utility normally refers to how well a thing functions as opposed to how good it looks. In economics, however, “utility” refers to the emotional state of being happy or satisfied.

The pricing function has organically evolved to take advantage of the marginal utility of money.

Marginal utility explains how satisfaction changes with consumption. Businesses use it for pricing, and governments for taxes ...

Constant Utility Marginal utility is the additional benefit your customer gets from the purchase of another sweater, lipstick or coffee.

If marginal utility were a sufficient account of prices, it could explain both the difference in unit prices and the parity of aggregate prices for gold and other commodities.

The MRS, or marginal rate of substitution, represents how easy it is to replace one good with another and retain the same level of consumer satisfaction.

Taylor's series and logarithmic estimates of health state-dependent utility functions both imply that job injuries reduce one's utility and marginal utility of income, thus rejecting the monetary loss ...