 The Structure of the Neoclassical TheoryChapter Chapter 7 in Competing Schools of Economic Thought, 2009, pp 157-186 from Springer Abstract: Abstract In the structure of the classical theory, we know that utility and subjective evaluations of the usefulness of commodities play no role in the determination of relative equilibrium prices and the economy’s general rate of profit. Hence, we need to distinguish between the use-value of classical economists and the utility of neoclassical economists. Use-value, for classical economists, meant the property of a good to satisfy human needs (real or imaginary), whereas utility – a concept that was developed gradually in the mid to the end of the nineteenth century – means the satisfaction that an individual derives from the consumption of a good or the use of a service. Since utility refers to the consumer and the intensity of satisfaction that he or she derives from a good or a service, it follows that utility has an apparently subjective character. By contrast, use-value refers to the properties of a commodity to satisfy social needs; it has an altogether different character. Keywords: Marginal Utility; Equilibrium Price; Demand Curve; Excess Demand; Supply Curve (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-92693-1_7 Ordering information: This item can be ordered from DOI: 10.1007/978-3-540-92693-1_7 Access Statistics for this chapter More chapters in Springer Books from Springer |
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