...Ivan Moscati The article studies the origin, content, and impact of two experiments to measure the utility of money, one by Frederick Mosteller and Philip Nogee in 1948–49 and one by Donald Davidson, Patrick Suppes, and Sidney Siegel in 1954. Both experiments relied on expected utility theory (EUT...

... transaction and consumer surplus or rent, both of which were expressed exclusively in terms of money transfers. Later on, Marshall moved toward an explicitly utilitarian framework by emphasizing the marginal utility of money, possibly because he had stumbled on the problem of the determinateness of marginal...

... paper was regularly used to make commercial payments. While thinkers of the stature of David Hume and Adam Smith utilized the quantity theory of money or the real bills doctrine to explain the monetary system, Henry Thornton broke new ground by developing a theory that recognized the essential truth...

... means; that is, the amount of money or general purchasing power at his disposal. A greater utility will be required to buy it if he is poor than if he is rich. . . . The clerk with El00 a year will walk into business in a much heavier rain than the clerk with E300 a year; for a sixpenny...

... , 4 : 151 -158. Nicholson , J. S. , 1894 . “The Measurement of Utility by Money.” Economic Journal , 4 : 342 -347. Lieben , Richard , 1894 . “On Consumer's Rent.” Economic Journal , 4 : 716 -719. Edgeworth , F. Y. , 1895 Review of Marshall's Principles of Economics, 3d ed...

.... Appendix 2 shows how demand and supply curves are derived from indifference curves. In appendix 1, finally, the assumption of a con- stant marginal utility of money is used to develop the graphical apparatus that became the characteristic contribution of the Investigations. 2. General Equilibrium...

... of subjective eco- nomic welfare, but his theory rested on two questionable assumptions: first, that the marginal utility of money is constant and second, that the utility function is addit ively separable. These assumptions were severely criticized in the early 1890s by many authors: Edgeworth...

... utility of money income requires that utility be observed. Pareto’s work on the stability conditions for a maximum total utility was continued by Slutsky. Slutsky 1952 adopted Pareto’s method of solving for the demand curve and used the same ordinal measurement of utility, but applied...

...Manuel Fernandez-Grela Duke University Press 2006 Allen, R. G. D. 1932 . The Foundations of a Mathematical Theory of Exchange. Economica 36 : 197 -226. ____. 1933 . On the Marginal Utility of Money and Its Application. Economica 40 : 186 -209. ____. 1934 . A Comparison...

.... Mulberg stresses the following: (1) with a cardinal utility of value and diminishing marginal utility of money, one had a strong argument for egalitarian income distributions; perhaps this induced the shift to an ordinal theory of utility; and (2...

... of the total utility which he derives from the consumption of assigned quantities (x and y), a measure represented by a function of those quantities. (279 n. 1; emphasis added) The reader will note that Edgeworth begins by assuming a money measure of utility.5 Although utility still appears...

.... If the purchases of all goods remained unchanged, the marginal utility of X would now be greater than its price multiplied by the marginal utility of money (assuming that the latter remains unchanged). In order to restore equi- librium, the consumption of X must accordingly increase...

... evaluate bets by taking into account the average of the utilities of the monetary payoffs of the bets. This hypothesis was later called expected utility theory. Second, Bernoulli assumed that the marginal utility of money is diminishing. Szpiro labels this latter assumption as nothing less than the basic...

... under fixed income and with the hypothesis of a constant marginal utility of money income (thus allowing symmetric income effects and the symmetry of cross-partials of demand functions) (478, equations 19 and 20). The econo- metric system to be tested (supposing linear demand curves) is thus...

... clear an advance as is usually supposed. Marshall’s consumer, who decides on his pur- chases by comparing the marginal utility of what is to be bought with the marginal utility of the money he will have to pay for it, is more like an actual consumer, at least so far as some important...

... clearly does not abandon utility theory to account for gambling. It is almost self evident that the utility of money decreases as a per- son’s total wealth increases; if this be granted, it follows at once that gaming is, in the long run, a sure way to lose utility; that every per- son...

... in the marginal utility of money to different people.” Samuelson (1982, 161) pointed out that this assumption implies that commodity taxes should not be imposed in the first place in the attempt to raise the fixed amount of government revenue. The reason...

... of money is held constant and supplies are fixed, the price must eventually reach the equilibrium level set by the mar- ginal utilities of buyers and sellers. So far so good, but how do we account for the portions of the supply that in Marshall’s examples are unsold? Dasgupta quotes Marshall’s...

...- 61. Berkeley also notes that the social utility of money would persist even if the monetary commodity itself vanished: $26. Query. Whether the Denominations being retained, although the Bullion were gone, Things might not nevertheless be rated, bought and sold, Industry promoted...

...D. Wade Hands Duke University Press 2006 Allen, R. G. D. 1932 . The Foundations of a Mathematical Theory of Exchange. Economica 36 : 197 -226. ____. 1933 . On the Marginal Utility of Money and Its Applications. Economica 40 : 186 -209. ____. 1936 . Professor Slutsky's...