TITLE:
A Mathematical Proof: Focus during Weekdays Should Be on Supply for the Sabbath a Support for Workable Competition
AUTHORS:
Gerald Aranoff
KEYWORDS:
Demand Fluctuations; Consumer Surplus; Business Cycle
JOURNAL NAME:
Modern Economy,
Vol.3 No.8,
December
31,
2012
ABSTRACT: This paper proves mathematically in a defined model with restrictive assumptions that consumers are better off when they have more food for the Sabbath at the expense of having less food for the other six days of the week! Like the manna that fell from heaven for forty years in the desert—an omer to a person, Sunday through Friday with double portions on Friday—we assume that consumers buy standardized semi-perishable food baskets, one basket per person per day, Sunday through Friday with extra baskets for the Sabbath. We analyze benefits to consumers according to two alternative pricing schemes, whereby consumer expenditures and weekly food consumed are the same. We prove that consumers are better off according to the pricing scheme that allows for more food for the Sabbath day. This agrees with business cycle theories that urge social focus on increasing and prolonging cyclical peaks. This supports John M. Clark’s workable competition thesis and will surprise supporters of SR marginal-cost pricing.