marginal utility of money

marginal utility of money

the increase in satisfaction (UTILITY) that an individual derives from spending one incremental unit of MONEY on goods or services.
References in periodicals archive ?
Since the marginal utility of money diminishes (like for any other good), it was argued that income redistribution increases net utility in society.
the marginal utility of money to be spent on goods other than i:
Sacrifice theory and the marginal utility of money.
This equation describes a curve that shows diminishing marginal utility of money and that people do not have linear utility (Samuelson, V.
It's not that the more you earn, the happier you are, she says, confirming what the theory of declining marginal utility of money says.
22) As we shall see in the next subsection, another condition is in effect required, according to Marshall, for the marginal utility of money to be approximately constant in real-world trading processes.
Their solution is to impose a correction to the analysis to reflect the fact that the marginal utility of money declines as income rises.
By dividing the utility of the emotions over the marginal utility of money (M) (14), an Emotional Coefficient (EC) displays the additional revenue in money terms a decision-maker gets due to emotions (see equation two).
For example, if the marginal utility of money decreases and the social welfare function is additive--the classic utilitarian view--then a more equal distribution of wealth will always be favored.
The second premise is that a unit of money at a lower level of income will increase utility to a greater degree than the same unit of money at a higher level of income (or that the marginal utility of money is decreasing).
As N tends to infinity, the SPE outcome of the ADOT scheme converges to the equal sacrifice solution's outcome if each player's marginal utility of money is constant at some c.
A dollar standard relies on the implicit assumption that the marginal utility of money is equal for all individuals.