THE MARGINAL UTILITY POWER OF SHARING AND INCREASING SOCIAL MARGINAL UTILITY

Volume: 4 Number: 2 June 1, 2015
Abdullah Keskın , Abdulkadir Gulsen
EN TR

THE MARGINAL UTILITY POWER OF SHARING AND INCREASING SOCIAL MARGINAL UTILITY

Abstract

The concept of utility is well known in microeconomic theory with the decreasing marginal utility. On the contrary of the neo-classical approach of methodological individualism, we argue that a utility maximizing oriented self-interest behavior does not guarantee optimizing and maximizing social total utility. What can be done instead, sharing goods with the poor and even the non-poor can undoubtly make spectacular contribution to the total social welfare of society. As Kaldor-Hicks criterions state, it is possible to increase social welfare even after Pareto Optimality. This study analysis the individual and social utility effects of sharing goods and services among people in terms of welfare economics. The study introduces new terminologies into the economics literature which are vertical consumption, horizontal consumption, decreasing individual marginal utility, increasing social marginal utility, individual total utility and total social utility. It concludes that without altruistic behavior it is not possible to maximize social welfare. Therefore sharing makes the society better off

Keywords

Altruism, Self-interest, Decreasing Individual Marginal Utility, Increasing Social Marginal Utility, Total Individual Utility, Total Social Utility, Vertical Consumption, Horizontal Consumption

References

  1. No references found
APA
Keskın, A., & Gulsen, A. (2015). PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA. Sakarya Üniversitesi İktisat Dergisi, 4(2), 95-109. https://izlik.org/JA25LJ26DU
AMA
1.Keskın A, Gulsen A. PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA. Sakarya Üniversitesi İktisat Dergisi. 2015;4(2):95-109. https://izlik.org/JA25LJ26DU
Chicago
Keskın, Abdullah, and Abdulkadir Gulsen. 2015. “PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA”. Sakarya Üniversitesi İktisat Dergisi 4 (2): 95-109. https://izlik.org/JA25LJ26DU.
EndNote
Keskın A, Gulsen A (June 1, 2015) PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA. Sakarya Üniversitesi İktisat Dergisi 4 2 95–109.
IEEE
[1]A. Keskın and A. Gulsen, “PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA”, Sakarya Üniversitesi İktisat Dergisi, vol. 4, no. 2, pp. 95–109, June 2015, [Online]. Available: https://izlik.org/JA25LJ26DU
ISNAD
Keskın, Abdullah - Gulsen, Abdulkadir. “PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA”. Sakarya Üniversitesi İktisat Dergisi 4/2 (June 1, 2015): 95-109. https://izlik.org/JA25LJ26DU.
JAMA
1.Keskın A, Gulsen A. PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA. Sakarya Üniversitesi İktisat Dergisi. 2015;4:95–109.
MLA
Keskın, Abdullah, and Abdulkadir Gulsen. “PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA”. Sakarya Üniversitesi İktisat Dergisi, vol. 4, no. 2, June 2015, pp. 95-109, https://izlik.org/JA25LJ26DU.
Vancouver
1.Abdullah Keskın, Abdulkadir Gulsen. PAYLAŞMANIN GÜCÜ VE ARTAN SOSYAL MARJİNAL FAYDA. Sakarya Üniversitesi İktisat Dergisi [Internet]. 2015 Jun. 1;4(2):95-109. Available from: https://izlik.org/JA25LJ26DU