<P> Carl Menger presented the theory in Grundsätze der Volkswirtschaftslehre ( translated as Principles of Economics ) in 1871 . Menger 's presentation is peculiarly notable on two points . First , he took special pains to explain why individuals should be expected to rank possible uses and then to use marginal utility to decide amongst trade - offs . ( For this reason , Menger and his followers are sometimes called `` the Psychological School '' , though they are more frequently known as `` the Austrian School '' or as `` the Vienna School '' . ) Second , while his illustrative examples present utility as quantified , his essential assumptions do not . ( Menger in fact crossed - out the numerical tables in his own copy of the published Grundsätze . ) Menger also developed the law of diminishing marginal utility . Menger 's work found a significant and appreciative audience . </P>
<P> Carl Menger presented the theory in Grundsätze der Volkswirtschaftslehre ( translated as Principles of Economics ) in 1871 . Menger 's presentation is peculiarly notable on two points . First , he took special pains to explain why individuals should be expected to rank possible uses and then to use marginal utility to decide amongst trade - offs . ( For this reason , Menger and his followers are sometimes called `` the Psychological School '' , though they are more frequently known as `` the Austrian School '' or as `` the Vienna School '' . ) Second , while his illustrative examples present utility as quantified , his essential assumptions do not . ( Menger in fact crossed - out the numerical tables in his own copy of the published Grundsätze . ) Menger also developed the law of diminishing marginal utility . Menger 's work found a significant and appreciative audience . </P>
who came up with the law of diminishing marginal utility
who came up with the law of diminishing marginal utility
Carl Menger
Carl Menger