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Weber-Fechner's Law and Demand Function


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  • Kazuyasu Shigemoto

    (Tezukayama University)


We apply the Weber-Fechner's law, which represents the relation between the magnitude of physical stimulus and the magnitude of psychological sense in human being, to the utility function. We conclude that the utility function of n-types of goods is of separable type u(x_1,x_2,...,x_n)=u_1(x_1)+u_2(x_2)+...+u_n(x_n), which gives the relation of the demand function in the form p_i=d u_i/d x_i. The explicit quantitative form of each utility function, which is suggested by the Weber-Fechner's law, becomes u_i(x_i)=A_i log (x_i/x(0)_i). Then we obtain each demand function in the familiar form p_i=A_i/x_i.

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Bibliographic Info

Paper provided by EconWPA in its series Microeconomics with number 0412001.

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Length: 7 pages
Date of creation: 02 Dec 2004
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Handle: RePEc:wpa:wuwpmi:0412001

Note: Type of Document - tex; pages: 7
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Keywords: Weber-Fechner's law; utility function; demand function;

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Cited by:
  1. Kazuyasu Shigemoto, 2005. "Weber-Fechner's Law, Demand Function and Related Topics," Microeconomics 0503004, EconWPA.


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