Diminishing Marginal Utility - an overview | ScienceDirect Topics
Diminishing marginal utility refers to the phenomenon that each additional unit of gain leads to an ever-smaller increase in subjective value. From: Self-Regulation and Ego Control, 2016 You might find these chapters and articles relevant to this topic. E.T. Berkman, ... J.L. Livingston, in Self-Regulation and Ego Control , 2016 Diminishing marginal utility refers to the phenomenon that each additional unit of gain leads to an ever-smaller increase in subjective value. For example, three bites of candy are better than two bites, but the twentieth bite does not add much to the experience beyond the nineteenth (and could even make it worse). This effect is so well established that it is referred to as the “law of diminishing marginal utility” in economics (Gossen, 1854/1983), and is reflected in the concave shape of most subjective utility functions (eg, Kahneman & Tversky, 1979; Rabin, 2000; see Fig. 13.2). An important consequence of diminishing marginal utility is that subjective va
Explore this link on the map →