This article describes cardinal and ordinal utility as I understand them and then argues that analysis under cardinal utility is more productive. I also argue for the plausibility of interpersonal comparisons of utility. Ordinal and Cardinal Utility When the preference of A to B is understood in as ordinal we may simply suppose that an … Read more Utility and Interpersonal Comparisons of Utility
This article is part 2 of 4 in a series on the preference elasticity of demand. This article will include the following: Gains to Utility from Preference Shift Identify the Preference-Substitution Effect Identify the Preference-Income Effect Simultaneous Price and Preference Shift Total Quantity Explained by Factor The subsequent article will refine the explanatory assignment using … Read more Assigning Explanation Under Simultaneous Price and Preference Shifts
This post will argue for intrinsic and objective value, but that is not to say that I don’t acknowledge subjective value. Both exist, but objective or intrinsic value is the superior choice for market morality and efficiency. This discussion grew out of a forum discussion on bitcointalk a while back. When a person takes an action, … Read more Arguing for Intrinsic, Objective Value and Moral Markets
Competition is a key economic concept. As we study Caeconomics, which is decision theory from the economic point of view, presuming that Christianity is true, but realizing that every person must interpret Christianity on a personal level, let’s see what the Bible has to say about competition. From the following site: http://www.openbible.info/topics/competition, I selected 5 verses … Read more What Does the Bible Say About Competition?
This will be an indefinite series wherein I compile various Christian ideas including scripture, doctrine and other ideas and relate them to economics. I posit that when the Christian scripture is accurately interpreted optimal outcomes will be created, including outcomes better than what we see as the “free market” today. This economic theory will be … Read more 5 Tenets of Christian Economics