The Law of Demand and Risk Aversion
AbstractThis note proposes a necessary and sufficient condition on a preference to guarantee that the demand function it generates satisfies the law of demand. It shows that the law of demand may be succinctly characterized by differences in an agents level of risk aversion when she is confronted with different lotteries composed of commodity bundles.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 2002-W03.
Date of creation: 01 Jan 2002
Date of revision:
law of demand; monotonicity; preference; risk aversion;
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kannai, Yakar, 1989. "A characterization of monotone individual demand functions," Journal of Mathematical Economics, Elsevier, vol. 18(1), pages 87-94, February.
- Bettzuge, Marc Oliver, 1998. "An extension of a theorem by Mitjushin and Polterovich to incomplete markets," Journal of Mathematical Economics, Elsevier, vol. 30(3), pages 285-300, October.
- John Quah, 1999.
"The Weak Axiom and Comparative Statics,"
Economics Series Working Papers
1999-W15, University of Oxford, Department of Economics.
- John K.-H. Quah, 2000. "The Weak Axiom and Comparative Statics," Econometric Society World Congress 2000 Contributed Papers 0437, Econometric Society.
- Debreu, Gerard, 1976. "Least concave utility functions," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 121-129, July.
- Magill, Michael & Shafer, Wayne, 1991. "Incomplete markets," Handbook of Mathematical Economics, in: W. Hildenbrand & H. Sonnenschein (ed.), Handbook of Mathematical Economics, edition 1, volume 4, chapter 30, pages 1523-1614 Elsevier.
- Polterovich, Victor & Mityushin, Leonid, 1978. "Criteria for Monotonicity of Demand Functions," MPRA Paper 20097, University Library of Munich, Germany.
- Ivan Boldyrev & Olessia Kirtchik, 2013. "General equilibrium theory behind the iron curtain: the case of Victor Polterovich," HSE Working papers WP BRP 14/HUM/2013, National Research University Higher School of Economics.
- Chambers, Christopher P. & Echenique, Federico & Shmaya, Eran, 2010.
"On behavioral complementarity and its implications,"
Journal of Economic Theory,
Elsevier, vol. 145(6), pages 2332-2355, November.
- Christopher P. Chambers & Federico Echenique & Eran Shmaya, 2007. "On Behavioral Complementarity and its Implications," Documentos de Trabajo (working papers) 1007, Department of Economics - dECON.
- Chambers, Christopher P. & Echenique, Federico & Shmaya, Eran, 2007. "On behavioral complementarity and its implications," Working Papers 1270, California Institute of Technology, Division of the Humanities and Social Sciences.
- John Quah, 2004.
"The Aggregate Weak Axiom in a Financial Economy through Dominant Substitution Effects,"
Economics Series Working Papers
2004-W18, University of Oxford, Department of Economics.
- John Quah, 2004. "The aggregate weak axiom in a financial economy through dominant substitution effects," Economics Papers 2004-W18, Economics Group, Nuffield College, University of Oxford.
- Quah, John K. -H., 2003. "Market demand and comparative statics when goods are normal," Journal of Mathematical Economics, Elsevier, vol. 39(3-4), pages 317-333, June.
- Michael Jerison & John K.-H. Quah, 2006. "Law of Demand," Discussion Papers 06-07, University at Albany, SUNY, Department of Economics.
- Peter Moffatt & Keith Moffatt, 2011. "Mirror utility functions and reflexion properties of various classes of goods," University of East Anglia Applied and Financial Economics Working Paper Series 031, School of Economics, University of East Anglia, Norwich, UK..
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise).
If references are entirely missing, you can add them using this form.