Economics and Kepler’s Angels Defending the Law of Marginal Utilities. Barry Schwartz, Ph.D. For the Mises Society March 2011. Law of Marginal Utilities. Price reflects Value at the Margin of “need” … 1862 Discovered separately by Jevons, UK Walras, France Menger, Austria.
Barry Schwartz, Ph.D.
For the Mises Society
Adam SmithBefore Newton & Before LMU
British treasury officials asked Newton how to price the Pound Sterling …
“ in applied mathematics,
you must describe your unit.”
2 masses m1 & m2 at a distance r
2 actors A1 & A2 trade an amount q1of good G1 for an amount q2of good G2
of the system
Moons & planets in Orbit & local motions of pendulums, falling apples
Market Prices, Supply, Demand‘unit of action’ – 2 systems
Voluntary trades are sufficient to explain the market laws of Classical Economics
No external or collective influences are needed
No coercion is needed
No Angels Need Apply