Jevons and Menger publish the founding works of neoclassical economics

Background. Jevons formulated the theory of utility as a mathematical function of quantity, arguing economics is necessarily mathematical. His 1862 paper outlined marginal utility, but his doctrines were fully developed only in 1871. Menger, an Austrian economist, rejected classical views to build a marginalist approach, culminating in his 1871 publication. These independent developments marked the opening of a new period in economic thought.

Jevons's Publication. Jevons's Theory of Political Economy (1871) is described as the start of the mathematical method in economics. It made the case that economics is necessarily mathematical, treating pleasure and pain as quantities of the same kind. This work established his reputation as a leading political economist and logician, marking the start of the Neoclassical Revolution.

Menger's Publication. Menger's study of political economy culminated in 1871 with the publication of Principles of Economics (Grundsätze der Volkswirtschaftslehre). This work established him as the founder of the Austrian school. Menger contributed to the marginal theory of value, rejecting many established views of classical economics to build his marginalist approach.