H. H. Gossen

H. H. Gossen was a German economist who significantly contributed to the development of marginal utility theory in the 19th century. His work, published in 1854, laid the groundwork for understanding how consumers derive satisfaction from goods and services.1

Gossen's key insight was that the additional satisfaction, or utility, gained from consuming an extra unit of a good decreases as more units are consumed. This concept, known as the law of diminishing marginal utility, helps explain consumer behavior and the paradox of value, where essential goods like water are less valuable than scarce luxury items like diamonds. His theories influenced later economists and became foundational to modern demand analysis.231