Preferences and normal goods: An easy-to-check necessary and sufficient condition
We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Alarie, Y. & Bronsard, C. & Ouellette, P., 1988.
"Preferences And Normal Goods : A Necessary And Sufficient Condition,"
Cahiers de recherche
8815, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Alarie, Yves & Bronsard, Camille & Ouellette, Pierre, 1990. "Preferences and normal goods: A necessary and sufficient condition," Journal of Economic Theory, Elsevier, vol. 51(2), pages 423-430, August.
- Alarie, Y. & Bronsard, C. & Ouellette, P., 1988. "Preferences and Normal Goods : a Necessary and Sufficient Condition," Cahiers de recherche 8815, Universite de Montreal, Departement de sciences economiques.
- John K.-H Quah, 2007. "The Comparative Statics of Constrained Optimization Problems," Econometrica, Econometric Society, vol. 75(2), pages 401-431, 03.
- Leroux, Alain, 1987. "Preferences and normal goods: A sufficient condition," Journal of Economic Theory, Elsevier, vol. 43(1), pages 192-199, October.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:108:y:2010:i:1:p:13-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.