A Praxeological Case for Homogeneity and Indifference

Abstract

The purpose of the article below is to explain the concept of homogeneity, the basis for the law of diminishing marginal utility. We will not rely on a psychological definition as Block (1980) does. Instead we offer a counterfactual, hence praxeological, approach to indifference. Recent papers by Long (2006) and Hülsmann (2003) are very helpful in this matter. The paper also clarifies and develops Hoppe (2005).