Tag Archives: increasing marginal utility

Increasing Marginal Utility of Goods Is Real, It Is a Behavioral Pattern in Fashion Markets.

Posted on February 26, 2019 by Andrew Zanegin

We suspected that it could be real (see our 2015 post “Market Demand under the the Assumption of Increasing Marginal Utility”). Yet we could not pinpoint any concrete economic industry or market with such behavior. Now we can do that. … Continue reading →

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An Increasing Marginal Utility May Produce Economic Bubbles

Posted on September 14, 2016 by Andrew Zanegin

In my earlier post I showed the  demand curve for a product A in case the marginal utility of this product increases. I am reproducing it here . It is a “normal” demand curve except that it  is truncated at point m … Continue reading →

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Market Demand under the Assumption of Increasing Marginal Utility

Posted on June 5, 2015 by Andrew Zanegin

 The diminishing marginal utility principle is a cornerstone of the neoclassical theory of markets. It is axiomatic by nature, based on seemingly obvious patterns of consumer behavior. Although there are cases of increasing marginal utility for consumers, the mainstream market … Continue reading →

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