Walrasian Solutions Without Utility Functions
AbstractSUMMARY: This note reviews consumers’ preference orderings in economics and shows that irrationality is a poor explanation for apparent violations of some axioms of order. Apparent violations seem to be better explained by the fact that consumers’ utility functions, if they exist at all, might not even belong to the class of quasi-concave functions. However, the main task of markets is the determination of equilibrium price vectors. The note shows in addition that, in Walrasian structures, quasi-concave utility functions are unnecessary for the determination of equilibrium price vectors.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8906.
Date of creation: 2008
Date of revision: 2008
Walrasian structures; preference orderings; irrationality; utility functions; and equilibrium price vectors;
Other versions of this item:
- A1 - General Economics and Teaching - - General Economics
- A10 - General Economics and Teaching - - General Economics - - - General
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-PKE-2008-06-07 (Post Keynesian Economics)
- NEP-UPT-2008-06-07 (Utility Models & Prospect Theory)
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