Re: query: "kinked" utility curves

[Eugene Coyle <eugenecoyle@xxxxxxx>]

Thad,

    There is a bit about this.  I think the best is the chapter titled
"Demand" in Robin Marris' book,  THE   THEORY OF MANAGERIAL CAPITALISM -or
something close to that title.  Great stuff that you won't find elsewhere.
    The other way to look at it is the work on how commodities are habit
forming.  (Marris explains why while others merely show it.)  Houthakker and
Taylor write about it in a book that is nameless in my brain.
    Take a look at Marris.

Gene Coyle

Thad Williamson wrote:

> Hi Pen-Lrs,
>
> Can anyone point me in the direction of an article or book that fleshes out
> the argument that individuals experience greater "disutility" in having
> something taken away from them than they gain in "utility" when they get
> something new, even if what they get is of the same monetary value? (sorry
> if that's not very clearly put.)
>
> This seems like a useful point to make in talking about the true costs of
> unemployment, plant closure and job/income loss (especially if these losses
> are supposed to be justified by gains in welfare that supposedly accrue to
> others).  Any references would be much appreciated.
>
> thanks,
> Thad