Abstract

http://ssrn.com/abstract=2302613
 


 



Alfred Marshall's Cardinal Theory of Value: The Strong Law of Demand


Donald Brown


Yale University - Cowles Foundation

Caterina Calsamiglia


Universitat Autònoma de Barcelona

July 29, 2013

Cowles Foundation Discussion Paper No. 1615R

Abstract:     
We show that all the fundamental properties of competitive equilibrium in Marshall's cardinal theory of value, as presented in Note XXI of the mathematical appendix to his Principles of Economics (1890), derive from the Strong Law of Demand. That is, existence, uniqueness, optimality, and global stability of equilibrium prices with respect to tatonnement price adjustment follow from the cyclical monotonicity of the market demand function in the Marshallian general equilibrium model.

Number of Pages in PDF File: 8

Keywords: Cardinal utility, Quasilinear utility, Cyclical monotonicity

JEL Classification: B13, D11, D51

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Date posted: July 30, 2013  

Suggested Citation

Brown, Donald and Calsamiglia, Caterina, Alfred Marshall's Cardinal Theory of Value: The Strong Law of Demand (July 29, 2013). Cowles Foundation Discussion Paper No. 1615R. Available at SSRN: http://ssrn.com/abstract=2302613 or http://dx.doi.org/10.2139/ssrn.2302613

Contact Information

Donald J. Brown (Contact Author)
Yale University - Cowles Foundation ( email )
Box 208281
New Haven, CT 06520-8281
United States
Caterina Calsamiglia
Universitat Autònoma de Barcelona ( email )
Edifici B - Campus Bellaterra
Barcelona, 08193
Spain
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