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On the differentiability of the benefit function

Author

Listed:
  • Bertrand Crettez

    (Université de Franche-Comté)

  • Naila Hayek

    (Université de Franche-Comté)

  • Jean-Michel Courtault

    (Université de Franche-Comté)

Abstract

The benefit function, introduced by Luenberger, provides a tool for well-defined cardinal comparisons of different bundles of goods. It also allows to study in an orignal way optimal consumers and firms choices, Pareto-optimality etc... In this note we prove that the benefit function is differentiable under standard conditions. This property is useful in order to study optimal choices.

Suggested Citation

  • Bertrand Crettez & Naila Hayek & Jean-Michel Courtault, 2004. "On the differentiability of the benefit function," Economics Bulletin, AccessEcon, vol. 4(5), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-04d00001
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    References listed on IDEAS

    as
    1. McKenzie, Lionel W., 2005. "Optimal economic growth, turnpike theorems and comparative dynamics," Handbook of Mathematical Economics, in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 2, volume 3, chapter 26, pages 1281-1355, Elsevier.
    2. Lionel W. McKenzie, 2005. "Classical General Equilibrium Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633302, December.
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    Cited by:

    1. Raphaël Giraud, 2012. "Money matters: an axiomatic theory of the endowment effect," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 303-339, June.
    2. Chavas, Jean-Paul, 2013. "On Demand Analysis and Dynamics: A Benefit Function Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149683, Agricultural and Applied Economics Association.
    3. Jean-Michel Courtault & Bertrand Crettez & Naïla Hayek, 2008. "Complementarity and Substitutability: A Dual Approach Based on Luenberger's Benefit Function," CEPN Working Papers halshs-00447417, HAL.
    4. Mauricio Benegas & Emerson Marinho, 2008. "Duality, Net Supply, and The Directional Distance Function," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211656140, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Jean-Paul Chavas & Michele Baggio, 2010. "On duality and the benefit function," Journal of Economics, Springer, vol. 99(2), pages 173-184, March.

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    More about this item

    Keywords

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    JEL classification:

    • D0 - Microeconomics - - General
    • D6 - Microeconomics - - Welfare Economics

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