Discover the Diamond-Water Paradox—why diamonds cost more than water. Learn about subjective value and marginal utility in economic valuation.

Learn the key differences between marginal utility and marginal value, how they impact decision-making, and why understanding ...

The law of diminishing marginal utility states that the marginal utility of a product or service declines as more of it is consumed by the individual. However, there are rare exceptions to this law.

Marginal utility helps set product pricing; high initial satisfaction decreases with more units. Some stores use bulk pricing when consumers value additional items less. Progressive taxes assume each ...

Giornale degli Economisti e Annali di Economia, Nuova Serie, Anno 42, No. 11/12 (Novembre-Dicembre 1983), pp. 749-768 (20 pages) The striking contemporaneous appearance of the theory of value based on ...

A GREAT deal of economic theory turns on how people cope with risk—one of the least escapable facts of economic life. The model that most economists rely on when they need to take account of risk in ...