Economics Dictionary of ArgumentsHome
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| Utility: In philosophy, the term utility or “benefit” refers to an advantageous or valuable result or advantage that arises from a particular action, situation, or circumstance. The term is often considered in ethical or consequentialist contexts. In economics, the term is related to decisions and opportunities. See also Decision theory, Rational choice, Public choice, Opportunity cost._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Mountifort Longfield on Utility - Dictionary of Arguments
Rothbard II 122 Value theory/subjective utility/Longfield/Rothbard: In value theory, Longfield worked out the subjective theory of value and price more fully than had been accomplished before in Great Britain. He concentrated firmly on market price as the important consideration rather than long-run price, and also showed that both are in any case determined by supply and demand. Marginalism: Longfield broke important new ground in his detailed marginal analysis of demand. Here he worked out the concept of consumer demand as a schedule, related to sets of prices, and even developed the idea of individual falling demand schedules as the fundamental basis of aggregate market demand. Demand/Longfield: (…) Longfield showed that market demand curves are constituted by a spectrum of supramarginal, marginal, and submarginal buyers, each with different intensities of demand. Furthermore, ‘the measure of the intensity of any person's demand for any commodity is the amount which he would be willing and able to give for it, rather than remain without it, or forego the gratification which it is calculated to afford him’. Price/Longfield: Yet, of course, despite the different intensities of demand, all Rothbard II 123 exchanges will be at the same market price. If, then, ‘the price is attempted to be raised one degree beyond this sum, the demanders, who by the change cease to be purchasers, must be those the intensity of whose demand was precisely measured by the former price... Thus the market price is measured by the demand, which being of the least intensity, yet leads to actual purchases’. In short, the marginal demand becomes a key to the determination of price. Supply/Longfiled: In his analysis of supply, Longfield showed that the supply relevant to the real, day-to-day market price is a previously produced stock of a good now fixed for the immediate present period (in short, what would now be called a vertical supply curve for the immediate market period). Furthermore, Longfield saw clearly, in contrast to Ricardo, that cost of production in no sense determines price; at most, it contributes indirectly to that determination by affecting the extent of supply. His analysis comes close to the later Austrian theory by brilliantly pointing out that the effect of cost on supply comes from the expectations of producers in deciding how much of a good to make and put on the market. Thus the cost of production acts by its influence on the supply, ‘since men will not produce commodities unless with the reasonable expectation of selling them for more than the cost of producing them’. Rothbard II 124 Isaac ButtVsLongfied/Rothbard: In utility theory proper, Butt corrected Longfield's Smith-like error in referring to consumption per se as ‘unproductive’. Butt also noted that the labour theory of value might be in a sense applicable if labour were the only scarce resource, and if, moreover, it were homogeneous and costlessly mobile between industries. But such conditions are of course impossible. 1. Mountifort Longfield. 1833. Lectures on Political Economy. Dublin 1834. https://doi.org/10.2307/2223849_____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Longfield I Mountifort Longfield Lectures on political economy, delivered in Trinity and Michaelmas terms, 1833 Dublin 1834 Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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