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Weakening The Strong Convexity Of Preferences

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  • Christophe Muller

    ()
    (Universidad de Alicante)

Abstract

In general models, the strong quasi-concavity of the objective function, sufficient for theoretical properties of demands in consumer theory, is often arbitrary. Then, weaker global concavity conditions that preserve such properties are desirable for such models. We propose a new global concavity condition that implies, for models with several nonlinear constraints: the local uniqueness and the smoothness of the decision functions, and the negativity of the generalised substitution matrix. This condition can be used to specify more general and more flexible economic models.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2005-36.pdf
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-36.

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Length: 40 pages
Date of creation: Dec 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-36

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Keywords: Programming Models; Consumer Economics: Theory; Household Production;

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