【Theory seminar】A Rehabilitation of the Law of Diminishing Marginal Utility: An Ordinal Marginal Utility Approach

  • 研討會日期 : 2021-11-30
  • 時間 : 14:30
  • 主講人 : Professor Shi-Shu Peng (彭喜樞)
  • 主持人 : Professor Chung-Cheng Lin
  • 地點 : Conference Room B110
  • 演講者簡介 : Professor Peng received his Ph.D. in Economics from University of California at Berkeley. He is currently an Assistant Professor at the Department of Public Finance, National Chengchi University. His research fields are International Economics, and Industrial Organization.
  • 演講摘要 : The model in which an individual maximizes his ordinal or cardinal total utility has long been the paradigm of individual choice theory. However, the two mainstream utility theories, the ordinal and cardinal total utility theories, have caused a dilemma, i.e. one has to sacrifice one of the following two: the good property of utility ordinality, or common-sense notions such as the law of diminishing marginal utility. Ordinal theory keeps the former but gives up the latter, while cardinal theory keeps the latter but sacrifices the former. We propose an ordinal marginal utility approach aiming to solve this dilemma by changing the very first assumption regarding individual choice.