Why is Jevon's paradox not widely known

Economic Theories Part 12: Jevons' Paradox

By Miriam Kraus May 29, 2013

Today we continue with the economic theory series. Most recently, in Part 11, we dealt with the neoclassics and with the founder of the Anglo-American school William Stanley Jevons and his views on marginal utility.

Today I would like to consider another theory or observation of Jevons, known as the Jevons' Paradox.

Jevon's paradox

Do you know that? Time is always short. So start optimizing. Your computer is getting faster and faster, so you should be finished sooner. Your car will get bigger and faster, so get home sooner. And despite all these savings, you eventually find that you still work longer and, despite your faster car, you somehow never get home earlier. In the end, you will notice that, despite all the time-saving measures, you don't have a bit more time than before, or even less. Paradox what ?!

 

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About the author
Miriam Kraus

Miriam Kraus is a freelance financial analyst whose special characteristics are persistent research and a feeling for essential aspects.