The Direct Measurement of Cardinal Utility

About the Book

This book establishes a saturating consumption function by non-linear regression reducing residual error by over 85%. From this, equations for the demand functions in competitive, speculative and Giffen-good markets were derived and substitution was re-examined. Equations for indifference curves and equilibrium equations of increasing complexity in all combinations of these markets were thence deduced. Equilibrium solutions were found to be unique by fairly straightforward mathematics whenever one of the goods was a competitive good. What is thought to be a new mathematical technique referred to as ‘Quasi Analytical Approximation’ was developed to demonstrate uniqueness in other cases. From this matrix equations for general equilibrium for all combinations of markets including monopoly and oligopoly markets were derived and solved. The book also explores the implications of the new theory for consumer choice, money, borrowing and welfare economics.

About the Author

Mike Benthall, like Pareto, whose theories he overturns, was originally trained and educated as a Professional Engineer, becoming a member of four engineering institutions. He worked mainly in the Aerospace and Defence Industry for Decca and EMI, eventually rising to be CIO of Calsonic a Pan-European automotive component maker. He was first registered with the Open University from its inception, studying economics, the environment and mathematic and gaining two degrees. He began to write this book while studying with the OU after discovering the consumption function was a saturating function not linear, as previously believed, overturning the axiom of the insatiability of human wants. This discovery led him to challenge established theory across many areas of micro-economics. His book took 12 years to complete.