Economic satiation

The economic principle of satiation[1] is the effect whereby the more of a good one possesses the less one is willing to give up in order to get more of it. This effect is caused by diminishing marginal utility, the effect whereby the consumer gains less utility per unit of a product the more units of a product he or she consumes.

For example if someone buys a can of cola they will enjoy it. If they then buy a second one they will enjoy it less, and so forth. It can continue to the point where drinking a can of cola becomes a negative experience, and beyond.

See also

References

  1. ↑ Andersen, Esben Sloth (2001). "Satiation in an Evolutionary Model of Structural Dynamics". Journal of Evolutionary Economics 11 (1): 143–164. doi:10.1007/PL00003852.


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