Economics Dictionary of ArgumentsHome
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| Indifference curve: An indifference curve in economics represents a graph showing different combinations of two goods that provide equal satisfaction or utility to a consumer. The curve illustrates consumer preferences, where any point along it reflects a trade-off between the goods. Indifference curves help analyze consumer behavior and choices in terms of substitution and utility maximization. See also Measurements._____________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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Murray N. Rothbard on Indifference Curve - Dictionary of Arguments
Rothbard III 306 Indifference Curve/Rothbard: The tendency to treat problems of human action in terms of equality of utility and of infinitely small steps is also apparent in recent writings on "indifference maps." ((s) Rothbard was writing in 1962). Almost the entire edifice of contemporary mathematical economics in consumption theory has been built on the "indifference" assumption. Its basis is the treatment of large-sized classes of combinations oftwo goods, between which the individual is indifferent in his valuations. Furthermore, the differences between them are infinitely small, so that smooth lines and tangents can be drawn. VsIndifference curves: The crucial fallacy is that "indifference" cannot be a basis for action. (RothbardVsIndifference Curve). >Action/Rothbard. If a man were really indifferent between two alternatives, he could not make any choice between them, and therefore the choice could not be revealed in action. We are interested in analyzing human action. Any action demonstrates choice based on preference: preference for one alternative over others. There is therefore no role for the concept of indifference in economics or in any other praxeological science. If it is a matter of indifference for a man whether he uses 5.1 or 5.2 ounces ofbutter for example, because the unit is too small for him to take into consideration, then there will be no occasion for him to act on this alternative. He will use butter in ounce units, instead of tenths of an ounce. For the same reason, there are no infinitely small steps in human action. Steps are only those that are significant to human beings; hence, they will always be finite and discrete. >Marginal utility/Rothbard, >Utility/Rothbard, >Value/Rothbard, >Praxeology/Rothbard._____________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. "Vs" indicates differences in content, not necessarily the chronological progression of a controversy. If a German edition is specified, the page numbers refer to this edition. |
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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