Open Access. Powered by Scholars. Published by Universities.®

Economics Commons

Open Access. Powered by Scholars. Published by Universities.®

Yale University

2007

Cyclical monotonicity

Articles 1 - 2 of 2

Full-Text Articles in Economics

Alfred Marshall's Cardinal Theory Of Value: The Strong Law Of Demand, Donald J. Brown, Caterina Calsamiglia Jul 2007

Alfred Marshall's Cardinal Theory Of Value: The Strong Law Of Demand, Donald J. Brown, Caterina Calsamiglia

Cowles Foundation Discussion Papers

We show that all the fundamental properties of competitive equilibrium in Marshall’s cardinal theory of value, as presented in Note XXI of the mathematical appendix to his Principles of Economics (1890), derive from the Strong Law of Demand. That is, existence, uniqueness, optimality, and global stability of equilibrium prices with respect to tatonnement price adjustment follow from the cyclical monotonicity of the market demand function in the Marshallian general equilibrium model.


Marshall's Theory Of Value And The Strong Law Of Demand, Caterina Calsamiglia Jul 2007

Marshall's Theory Of Value And The Strong Law Of Demand, Caterina Calsamiglia

Cowles Foundation Discussion Papers

We show that all the fundamental properties of competitive equilibrium in Marshall’s theory of value, as presented in Note XXI of the mathematical appendix to his Principles of Economics (1890), derive from the Strong Law of Demand. This is, existence, uniqueness, optimality, global stability of equilibrium prices with respect to tantonnement price adjustment and refutability follow from the cyclical monotonicity of the market demand function in the Marshallian general equilibrium model.