Nature and Role of Substitution in Microeconomics

Nature and Role of Substitution in Microeconomics

Authors: Arup Kanti Konar,
Format: Paperback | Genre : Business & Economics | Other Book Detail

The concept of “substitution” was introduced by the Greek scientist Archimedes (287-212 B.C) of Syracuse in his On the Sphere and Cylinder. It is a work published by Archimedes in two volumes in 225 BC. Archimedes wrote: “Further of unequal lines, unequal surfaces, and unequal solids, the greater exceeds the less by such a magnitude as, when added to itself, can be made to exceed any assigned magnitude among those, which are comparable with (it and with) one another” (Heath, 1897, p.4). The signification of substitution can be understood from the “law of substitution of similars” and the “axiom of substitution”. The “law of substitution of similars” was applied in his economic theory as the “law of indifference” by Wicksteed (Robertson, 1951, p. 243). But the “axiom of substitution” can be defined from the economist's intuitive point of view - “Given a particular quantity of some commodity of which a person is desirous, it is always possible to find some quantity of other commodities sufficiently great to compensate him for loss of part of his consumption of the given commodity” (Chipman, 1960, p. 194). Stigler (1966, pp.25-26) emphasizes that “there is no simple 'technical' measure of substitution: not only is it difficult to compare heterogeneous things (is radio a better substitute for television than for a theatre or a newspaper?), but substitutability varies with circumstances (a tractor is a substitute for a horse to a farmer, less so to a riding academy)”.

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Arup Kanti Konar

Arup Kanti Konar

Arup Kanti Konar acquired his Ph.D degree from IGNOU, New Delhi, India. His research interests and publications are not confined to economics discipline only. He has much research interest on sustainability. His famous two articles on sustainability were published in the journal entitled Mother Pelican: A Journal of Solidarity and Sustainability. He has twenty seven articles and books published by national and international publishers. He is the member of the editorial board of more than eight national and international journals. He is principal and Associate professor of economics of Achhruram Memorial College, Jhalda, Purulia, West Bengal, India. He can be contacted with the email: akkonar@gmail.com.