Marques, Jorge and Pascoal, Rui (2018): Mathematical Economics  Marginal analysis in the consumer behavior theory. Published in: in Proceedings of the 19th SEFIMWG European Seminar on Mathematics in Engineering Education

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Abstract
In the neoclassical theory, the economic value of a good is determined by the benefit that an individual consumer attributes to the last ("marginal") unit consumed. Marginal analysis was introduced to the theory of value by William Jevons, Carl Menger and Léon Walras, the founders of marginalism. Since the socalled “marginalist revolution” of the 1870s, differential (or infinitesimal) calculus has been applied to the mathematical modelling of economic theories. Our goal is to present some consumer behavior models, their advantages and limitations, using the methodology of economic science. It should be emphasized that each (re)formulation is based on different economic principles: diminishing marginal utility, diminishing marginal rate of substitution and weak axiom of revealed preference.
Item Type:  MPRA Paper 

Original Title:  Mathematical Economics  Marginal analysis in the consumer behavior theory 
Language:  English 
Keywords:  Marginal analysis, consumer behavior models, diminishing marginal rate of substitution, weak axiom of revealed preference 
Subjects:  C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods D  Microeconomics > D0  General > D03  Behavioral Microeconomics: Underlying Principles 
Item ID:  96442 
Depositing User:  Prof. Dr. Jorge Marques 
Date Deposited:  10 Oct 2019 07:15 
Last Modified:  10 Oct 2019 07:15 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/96442 