Alfred Marshall's Cardinal Theory of Value: The Strong Law of Demand
AbstractWe 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.
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Date of creation: 19 Sep 2013
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Other versions of this item:
- Donald J. Brown & Caterina Calsamiglia, 2007. "Alfred Marshall's Cardinal Theory of Value: The Strong Law of Demand," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 1615R, Cowles Foundation for Research in Economics, Yale University, revised Jul 2013.
- B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Stockholm School)
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-28 (All new papers)
- NEP-HIS-2013-09-28 (Business, Economic & Financial History)
- NEP-HPE-2013-09-28 (History & Philosophy of Economics)
- NEP-MIC-2013-09-28 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, McMaster University Archive for the History of Economic Thought, number marshall1890.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195102680, October.
- Donald J. Brown & Caterina Calsamiglia, 2005.
"The Nonparametric Approach to Applied Welfare Analysis,"
Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University
1507, Cowles Foundation for Research in Economics, Yale University.
- Donald Brown & Caterina Calsamiglia, 2007. "The Nonparametric Approach to Applied Welfare Analysis," Economic Theory, Springer, Springer, vol. 31(1), pages 183-188, April.
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