Prices in the utility function and demand monotonicity

Kodai Mathematical Journal

Emilio Barucci¹  Filippo Gazzola¹ 

[1] Dipartimento di Matematica Politecnico di Milano Piazza Leonardo da Vinci

关键词: Utility;    demand;    Veblen effect;    transport equation;   

DOI  :  10.2996/kmj/1414674608

学科分类：数学（综合）

来源: Tokyo Institute of Technology, Department of Mathematics

【 摘 要 】

References(40)We analyze utility functions when they depend both on the quantity of the goods consumed by the agent and on the prices of the goods. This approach allows us to model price effects on agents' preferences (e.g. the so-called Veblen effect and the Patinkin formulation). We provide sufficient conditions to observe demand monotonicity and substitution among goods. Power utility functions are investigated: we provide examples of price dependent utility functions that cannot be written as an increasing transformation of a classical utility function dependent only upon quantities.

【 授权许可】

Unknown