Gossen's laws

Gossen's laws, named for Hermann Heinrich Gossen (1810–1858), are three laws of economics:

where
  • is utility
  • is quantity of the -th good or service
  • is the price of the -th good or service
  • Gossen's Third Law is that scarcity is a precondition for economic value.

See alsoEdit

ReferencesEdit

  • Gossen, Hermann Heinrich; Die Entwicklung der Gesetze des menschlichen Verkehrs und der daraus fließenden Regeln für menschliches Handeln (1854). Translated into English as The Laws of Human Relations and the Rules of Human Action Derived Therefrom (1983) MIT Press, ISBN 0-262-07090-1.