Analysis of marginalism. Part 2

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Abstract

 

In recent years, based on the traditional theory of value — the labor theory of value and the theory of surplus value, as well as the hypothesis of Jevons, Tesla and Foley, — Chinese and Russian scholars have further adopted the mathematical paradigm of theoretical mechanics for reference to establish a mathematical model system for economics, which is called the New theory of value. Compatible with the traditional theory of value, the new theory of value puts forward the idea that the value depends on the force of labor expended in the process of commodity production, and the value appreciation depends on the labor gravitational force generated by the improving dexterity of workmen. That is to say, during the process of production, constant capital and variable capital as kinetic energy and potential energy of value, convert into each other under the value conservation theorem, playing a dominate role in generating value and surplus value of products. In addition, the law of diminishing marginal utility is not an axiom, but a special economic law under unbalanced supply and demand. Obviously, these theoretical conclusions are of great significance, which not only make the traditional theory of value a self-consistent logical system, but also complete the New theory of value by absorbing the rational components from both the classical economics based on the labor theory of value and the theory of surplus value, and the neoclassical economics based on the law of diminishing marginal utility. In this paper, we will analyze this problem by investigating the origin of the law of diminishing marginal utility.

About the authors

Jie Wu

Guangzhou Milestone Software Co., Ltd.; National Simulation and Control Engineering Technology Research Center

Email: jw@gzmss.com
Guangzhou, China

Valery Leonidovich Makarov

ЦЭМИ РАН; Российская экономическая школа; Высшей школы государственного администрирования МГУ имени М.В. Ломоносова

Email: makarov@cemi.rssi.ru
Russian Federation

Albert Raufovich Bakhtizin

Central economic and mathematical Institute of the Russian Academy of Sciences

Email: albert.bakhtizin@gmail.com
Russian Federation

Zili Wu

Guangzhou Milestone Software Co.

Author for correspondence.
Email: wzl@gzmss.com
China

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