A Global Formulation Of Lie Theory of Transformational by Palais, Richard

By Palais, Richard

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It is the value of the concrete partial quantity that influences price determination, not the value of the goods category. Since we assign each individual part of a given supply only the importance that is derived from the satisfaction of wants that it provides, and since in each individual category of wants the urgency of further satisfaction is reduced as satiation progresses, each concrete 25 partial quantity is valued on the basis of the importance of the last and least important of the concrete wants that can just be satisfied with the available supply (marginal utility).

In view of the failure of all efforts to explain this paradox, it was decided to look for other explanations of value which however could not be thought out without artificial aids and without contradiction. Something was obviously wrong. Menger succeeded in his ingenuous first work to overcome this seeming paradox of value. It is not the importance of an entire category of goods that determines value, but the importance which is assigned to that part that is presently available. It is the value of the concrete partial quantity that influences price determination, not the value of the goods category.

To carry out this derivation in a specific case is the task of the theory of imputation which deals with the prices of land, wages, capital rent, and profit. On these new foundations Menger and his followers built, by using principles established by the classical economists, a complete system for the explanation of economic phenomena. Ill At about the same time and independently of Menger, the British economist William Stanley Jevons and the Frenchman Leon Walras, working in Lausanne, taught similar theories.

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