The Shared Economy

Abstract: The theory of marginal utility describes how consumers choose between goods. However, marginal utility has also found application in a wide range of weightier subjects. For example, marginal utility can be used in the allocation of resources in healthcare programmes. This paper posits that marginal utility is also applicable in the allocation of the national income among corporations, government, and households. Using data from the UK Office for National Statistics, this paper finds that for the most part of the decade, from 2009 to 2018, household disposable income fell short of what might be considered an optimal share of the national income.