The Role of Diminishing Marginal Utility in the Ordinal and Cardinal Utility Theories

@article{Lin2019TheRO,
  title={The Role of Diminishing Marginal Utility in the Ordinal and Cardinal Utility Theories},
  author={Chung‐Cheng Lin and Shi‐Shu Peng},
  journal={ERN: Other Macroeconomics: Employment},
  year={2019}
}
We illustrate the role of the law of diminishing marginal utility in the two main modern utility theories, the ordinal and cardinal utility theories, using a generalised total utility function. In short, the ordinal utility theory, in which utility is immeasurable, must abandon the law of diminishing marginal utility; the cardinal utility theory, although able to retain this law, suffers from keeping the unrealistic view of utility measurability, which Samuelson criticises as “infinitely… 
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