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Non Utility Maximizing Behaviour: Probabilistic Choice in a Budget Set “Box”. Properties of Expected Demand Functions

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Author Info
Larsson, Lars-Göran () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Abstract

In this paper we use some(even a convex) probabilistic frequency functions in two choice variables defined over the budget set” box” and calculate the expected demand to study its properties The expected demands have own price negativity , are normal goods and are homogeneous of degree zero*. The detailed properties of deterministic demand functions can be replaced with similar properties for some expected demand functions the latter found with fewer and behaviourally less restrictive assumptions. To assume a deterministic utility function to be maximized is more restrictive in a behavioural sense than assuming random choice between some boundaries.

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File URL: http://hdl.handle.net/2077/9854
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 293.

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Length: 22 pages
Date of creation: 18 Mar 2008
Date of revision:
Handle: RePEc:hhs:gunwpe:0293

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Non-maximising behaviour; Bounded rationality; Random choice; Expected demand;

Find related papers by JEL classification:
C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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This page was last updated on 2009-12-9.


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