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Diminishing marginal utility is a basic economic concept.

• hackeraccount 5y ago
  You're correct. I know that I got a lot more utility out of the first $100 I ever made then a $100 now. I don't think mentally it tracked perfectly though - that first $100 was a lot but I knew in the larger scheme it wasn't really a lot of money and today I'll still price show to save $100 even though I know it's not a lot in terms of my income. I have no economic concept for this but I strongly suspect it's true. How about this? If you go rooting around underneath my couch cushions you'll find quarters. If you do the same for Bill Gates' couch you'll find ... Not $100 bills. Even if in respect to his entire wealth a $100 is less then nothing to Bill Gates he can still see the utility that money has in the world at large and that changes how he views it - maybe he doesn't see it the same way I do now or I did when I was 15 but he'd value it more then would be expected in relation to his over all wealth.