ORCID
- Rod Sheaff: 0000-0002-7984-2627
Abstract
Marginal utility (MU) theories of consumer demand assume that consumers try to maximise a generic benefit (‘utility’) by selecting purchases giving equal marginal utility per unit of cost, from which are predicted the observed relationships between price changes and quantities of demanded consumer goods. Attempts to remedy the explanatory shortcomings of MU theory usually supplement it with additional assumptions. This paper proposes taking that approach to its logical conclusion by using consumer and psychological research findings not to supplement but to replace the concept of utility entirely with realistic explanations of consumer behaviour.
DOI Link
DOI
10.1017/S1744137424000353
Publication Date
2025-03-05
Publication Title
Journal of Institutional Economics
Volume
21
Issue
e7
ISSN
1744-1374
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
First Page
1
Last Page
20
Recommended Citation
Sheaff, R. (2025) 'Toward a realistic view of consumer behaviour', Journal of Institutional Economics, 21(e7), pp. 1-20. Available at: 10.1017/S1744137424000353
