The expected utility hypothesis of Bernoulli " et alii " was revived by various 20th century thinkers, perhaps most notably Ockhamistic argument . ( It should perhaps be noted that, in expected utility analysis, the law of diminishing marginal utility corresponds to what is called risk aversion .)
32.
As an economist would put it, this research found diminishing marginal utility-- less enjoyment from an additional purchase-- from new possessions, compared with experiences like travel and restaurant meals . " The good life, " the authors wrote, " may be better lived by doing things than by having things ."
33.
He was further noted for producing a theory of interest and of profit in equilibrium based upon the interaction of diminishing marginal utility with diminishing marginal productivity of time and with time preference . ( This theory was adopted in full and then further developed by Knut Wicksell and, with modifications including formal disregard for time-preference, by Wicksell's American rival Irving Fisher .)
34.
When indifference curves ( which are essentially graphs of instantaneous rates of substitution ) and the convexity of those curves are not taken as given, the " law " of diminishing marginal utility is invoked to explain diminishing marginal rates of substitution a willingness to accept fewer units of good or service A in substitution for B as one's holdings of A grow relative to those of B.
