But the cost cannot go much further down, because there are other potential renters having other marginal utilities
in mind, which will justify profitable renting of the real estate.
Within the random utility framework, the coefficients are interpreted as marginal utilities
, and [[beta].sub.ci] is the marginal utility of income.
The first explanation for low [demonstrated] altruism rates is that new goods and services (and corresponding wants) are being developed quickly enough to maintain the marginal utilities
of incomes directly used above those possible through caring-based exchanges.
Hence, the statements made above about marginal utilities
should not be confused with the total or average monetary service flow produced by an asset.
The approach yields hedonic price equations that can be consistent with declining marginal utilities
The second-order conditions hold when we assume that the cross-partials between the housing characteristics and the composite good are positive, that the marginal utilities
of goods h and x are higher in state 1 when the event does not occur than in state 0 when it does, and thus [Mathematical Expression Omitted] that the hedonic price increases at a decreasing rate when the level of characteristic increases, ([II.sub.hh] < 0), that marginal utilities
of x and h both increase at decreasing rates, [V.sub.hh] & [V.sub.xx] < 0, that [P.sub.rr] > 0, and that the marginal utility of income is constant.
Technically, utilizing that marginal costs for self-insurance and saving are identical, the comparison simplifies to comparing marginal utilities
in the loss and no-loss states.
Finally, likelihood ratio tests could not reject the null hypothesis that [[beta].sup.nolabel.sub.k] = [[beta].sup.calorieonly.sub.k] = [[beta].sup.trafficlight.sub.k] for all k > 1, meaning that the calorie labels only influenced the marginal utility of calories but not the marginal utilities
associated with food-type.
119-120) In other words, marginal utility theory states that the relative prices are equal to ratios of the corresponding marginal utilities
. This works for the relative prices of say good i and good j as follows:
Moreover, because of the existence of cross-border pollution, the relevant Samuelson rule accounts not only for the marginal willingness to pay for pollution abatement within the emitting country, but also for the marginal willingness to pay for it in the other country, weighted by the relative marginal utilities
Extend the parallel line through to each product's labour supply curve (written in terms of marginal utilities
In general there can be many such stochastic discount factors--for example, different investors k whose marginal utilities
follow different stochastic processes will have different [M.sub.k,t+1] -- but each stochastic discount factor must satisfy equation (2).