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Gossen’s Laws
(838 words)

Gossen’s Laws are two central tenets of modern economic theory that have to do with consumer behavior. The first (the law of diminishing marginal utility) describes the increasing satisfaction that occurs when a good is consumed (Consumption). The second (often called the law of compensation of marginal utility) deals with the alternative consumption of multiple products: when a consumer wishes to consume several goods but has only a limited time budget, he must divide his consumption of the various goods in such a way as to m…

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Hesse, Jan-Otmar, “Gossen’s Laws”, in: Encyclopedia of Early Modern History Online, Editors of the English edition: Graeme Dunphy, Andrew Gow. Original German Edition: Enzyklopädie der Neuzeit. Im Auftrag des Kulturwissenschaftlichen Instituts (Essen) und in Verbindung mit den Fachherausgebern herausgegeben von Friedrich Jaeger. Copyright © J.B. Metzlersche Verlagsbuchhandlung und Carl Ernst Poeschel Verlag GmbH 2005–2012. Consulted online on 03 December 2023 <http://dx.doi.org/10.1163/2352-0272_emho_SIM_020345>
First published online: 2015
First print edition: 20180915

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