Authors
Timothy L Keiningham, Lerzan Aksoy, Alexander Buoye, Joan Ball
Publication date
2016/12/22
Journal
Review of Business
Volume
37
Issue
2
Pages
46-58
Publisher
St. John's University, College of Business Administration
Description
One of the fundamental underpinnings of economic theory is that customers tend to maximize their levels of satisfaction when making purchase decisions. This concept is known as Gossen's Second Law (in Blaug 1996, p. 309, original German in Gossen 1854); specifically," A person maximizes his utility when he distributes his available money among the various goods so that he obtains the same amount of satisfaction from the last unit of money spent upon each commodity."
Scholar articles