Jevons's Complex Cases in the Theory of Exchange

Abstract

When William Stanley Jevons first presented his theory of exchange, he used the example of two trading bodies (A and B) holding stocks of corn and beef (goods X and Y), but he was eager to show how the basic results could be applied to a variety of situations. After considering the relatively simple introduction of transport costs, Jevons added three subsections (Jevons 1957, pp. 111–19) which demonstrated his confident handling of his approach. There have been many critical comments on Jevons's handling of mathematics, including those of Alfred Marshall in his review of the Theory of Political Economy (Jevons 1872; see Black 1981). However, these examples show that Jevons produced a clear and succinct statement of the mathematical structure of the theory of exchange.