No, according to economic theory, the law of diminishing marginal utility generally does not apply to money. Please cite a source that says having more AUM somehow decreases potential yield. Sounds retarded. People say stuff that needs evidence then say obviously like its a source.
I think GP doesn't mean "returns" as in investment returns. I think they're talking about like... living. The utility of buying a second (or tenth) house/car/whatever is drastically lower return than the utility of buying your first one.
byearthithatius|1 year ago
dmoy|1 year ago
enragedcacti|1 year ago
> We have thus confirmed the (cardinalist) assumption of nineteenth century economists that marginal utility of income declines with income.
https://cep.lse.ac.uk/pubs/download/dp0784.pdf
People say stuff that needs evidence then say "according to economic theory" like its a source.
(fwiw I agree that this isn't a good argument for a log scale)