I should mention a component of the classical theory called “declining marginal utility.” This means that the first two or three tomatoes you buy are worth more to you than the next three, and by the time you have more than you can possibly eat before the next one goes bad, they’re basically worthless. (We’ll leave aside that the seller, probably a corporation, would like to sell as many tomatoes as possible and does not experience declining marginal utility of money.)
This idea seems basically to make sense for groceries or movie tickets,[1] but it doesn’t make much sense for medical services. Either you need something once, and you’re done; or you need it continuously, for the rest of your life. I’m not going to get a second right hemicolectomy no matter how cheap it is, and I would have been no more inclined to get the first one if it were free or even if they paid me to take it. On the other hand I’m not going to stop taking my blood pressure medications because I’ve gone long enough without a heart attack that I’m now satisfied.
[1] It’s actually not so simple. As I consume tomatoes or movies, I might acquire a taste for them and end up buying more rather than less. People might praise my tomato sauce so much that I end up bottling gallons of it and selling it, and buying all the tomatoes I can get my hands on. Then there are the cases of collectors and addicts. In other words these assumptions are generally intuitively appealing, but empirically half-truths at best.
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