The Place of Science in Modern Civilisation, and Other EssaysVeblen, Thorstein
Philosophy
The Place of Science in Modern Civilisation, and Other Essays
Veblen, Thorstein
Economics; Science
Among the notable chapters of the _Essentials_ is one (vi.) on Value and
its Relation to Different Incomes, which is not only a very substantial
section of Mr. Clark's economic theory, but at the same time a type of
the achievements of the latter-day hedonistic school. Certain features
of this chapter alone can be taken up here. The rest may be equally
worthy the student's attention, but it is the intention here not to go
into the general substance of the theory of marginal utility and value,
to which the chapter is devoted, but to confine attention to such
elements of it as bear somewhat directly on the question of equitable
distribution already spoken of. Among these latter is the doctrine of
the "consumer's surplus,"--virtually the same as what is spoken of by
other writers as "consumer's rent."[21] "Consumer's surplus" is the
surplus of utility (pleasure) derived by the consumer of goods above the
(pain) cost of the goods to him. This is held to be a very generally
prevalent phenomenon. Indeed, it is held to be all but universally
present in the field of consumption. It might, in fact, be effectively
argued that even Mr. Clark's admitted exception[22] is very doubtfully
to be allowed, on his own showing. Correlated with this element of
utility on the consumer's side is a similar volume of disutility on the
producer's side, which may be called "producer's abatement," or
"producer's rent": it is the amount of disutility by which the
disutility-cost of a given article to any given producer (laborer) falls
short of (or conceivably exceeds) the disutility incurred by the
marginal producer. Marginal buyers or consumers and marginal sellers or
producers are relatively few: the great body on both sides come in for
something in the way of a "surplus" of utility or disutility.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account