Economics Dictionary of ArgumentsHome
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| Utility theory: Utility theory is a concept from economics and ethics that states that actions or decisions should be evaluated on the basis of maximum utility. In economics, utility theory describes how individuals make decisions in order to maximize their utility or well-being. It assumes that people make rational decisions by evaluating the available options and choosing the one that promises the highest personal benefit. This theory is used in microeconomics and decision theory. See also utilitarianism, rationality, decision theory, Multi-attributive utility theory._____________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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William Forster Lloyd on Utility Theory - Dictionary of Arguments
Rothbard II 128 Marginal utility/Utility theory/value/Willam Forster Lloyd/Rothbard: (…) Lloyd, (…) thinks he discovers in [Adam Smith’s] Wealth of Nations inspiration for a subjective theory of value. Value, Lloyd asserts, is ‘a feeling of the mind’. It can be understood as belonging to a single object, he added, where the feeling reveals itself ‘at the margin of separation between the satisfied and unsatisfied wants’. Lloyd: Let us suppose the case of a hungry man having one ounce, and only one ounce of food at his command. To him this ounce is obviously of very great importance. Suppose him now to have two ounces. These are still of great importance; but the importance of the second is not equal to that of the single ounce. Rothbard: Similarly, Lloyd goes on, the utilities of different goods compared with one another and each of their values falls with increase in supply; so a good that may be more valuable than another in an absolute philosophic sense, in the sense of a class of the commodity, can be worth very little if its supply is abundant. Rothbard II 129 Value/Lloyd: William Lloyd was also clear that value, being subjective, could not be measured. Lloyd goes on to point out, quite correctly, that value or valuation is anterior to exchange, and that such valuations also take place in the case of an isolated Robinson Crusoe economy. RothbardVsLloyd: Unfortunately, Lloyd was so enamoured of the distinction between value and exchange, and of Smith's faulty split between use- and exchange-values, that he failed to complete the task of the theory of demand and link up marginal utility analysis with consumer demand and the determination of market pricing. >Demand, >Price, >Use value, >Value, >Value theory, >Supply, >Marginalism._____________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. |
Lloyd I William Forster Lloyd Lecture on the Notion of Value, as Distinguished Not Only from Utility, but also from Value in Exchange Oxford 1833 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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