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Mas-Colell, Whinston and Green Versus Scitovsky on Profit and Utility Maximization

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Author Info
Kepa M. Ormazabal Sánchez () (UPV/EHU)
Abstract

I contrast the theoretical foundation of profit maximization of Mas-Colell, Whinston and Green\'s \"Microeconomics\" against that provided by Scitovsky in a paper of 1943. Whereas Mas-Colell, Whinston and Green try to show that profit maximization can be derived from utility maximization, Scitovsky categorically states the contrary view. I argue, first, that the foundation provided by Mas-Colell, Whinston and Green is not sound and, secondly, that Scitovsky\'s line of reasoning opens a better way to model bussiness behavior.

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Paper provided by Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I in its series IKERLANAK with number 200520.

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Date of creation: 02 Aug 2005
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Handle: RePEc:ehu:ikerla:200520

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Postal: Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research
Keywords: profit maximization utility maximization business behavior

Find related papers by JEL classification:
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

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This page was last updated on 2008-9-20.


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