Weakening the Strong Convexity of Preferences
In general models, the strong quasi-concavity of the objective function, which is sufficient for theoretical properties of demands in consumer theory, is often arbitrary and weaker global concavity conditions are desirable. We propose a new global concavity condition that implies, for models with several nonlinear constraints, the local uniqueness and the smoothness of the decision functions as well as the negativity of the generalised substitution matrix. This condition can be used to specify general and flexible economic models and is easier to check than the strong quasi-concavity or the usual second order conditions over the whole domain.
|Date of creation:||29 Aug 2002|
|Contact details of provider:|| Postal: 2 Dean Trench Street, Westminster, SW1P 3HE|
Phone: +44 20 3137 6301
Web page: http://www.res.org.uk/society/annualconf.asp
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ecj:ac2002:145. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.