IDEAS home Printed from https://ideas.repec.org/p/jmp/jm2016/pzh519.html
   My bibliography  Save this paper

Demand without Utility: The First Evidence

Author

Listed:
  • Drew Zhu

Abstract

According to the new attribute theory that is based on but different than Lancasterâs attribute theory, the paper builds a linear programming model of minimizing food cost subject to four nutrient requirements and derives a system of food demand functions from this model with a programming method. This derivation is independence of any utility function and at least is an exception of the utility theory. The programming method, which is neither a parametric nor a typically non-parametric method, allows us to thoroughly understand the mechanism of demandâs formation. The conclusion implies that the new attribute theory and the programming method might be an alternative approach to utility theory and the related estimation methods to derive the demand system.

Suggested Citation

  • Drew Zhu, 2016. "Demand without Utility: The First Evidence," 2016 Papers pzh519, Job Market Papers.
  • Handle: RePEc:jmp:jm2016:pzh519
    as

    Download full text from publisher

    File URL: https://ideas.repec.org/jmp/2016/pzh519.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dominique, C-Rene, 2007. "Should The Utility Function Be Ditched?," MPRA Paper 5987, University Library of Munich, Germany.
    2. David Atkin, 2013. "Trade, Tastes, and Nutrition in India," American Economic Review, American Economic Association, vol. 103(5), pages 1629-1663, August.
    3. Dominique, C-Rene, 2008. "Walrasian Solutions Without Utility Functions," MPRA Paper 8906, University Library of Munich, Germany, revised 2008.
    4. Pierre Dubois & Rachel Griffith & Aviv Nevo, 2014. "Do Prices and Attributes Explain International Differences in Food Purchases?," American Economic Review, American Economic Association, vol. 104(3), pages 832-867, March.
    5. Arthur E. Attema & Han Bleichrodt & Kirsten I. M. Rohde & Peter P. Wakker, 2010. "Time-Tradeoff Sequences for Analyzing Discounting and Time Inconsistency," Management Science, INFORMS, vol. 56(11), pages 2015-2030, November.
    6. Arthur E. Attema & Han Bleichrodt & Yu Gao & Zhenxing Huang & Peter P. Wakker, 2016. "Measuring Discounting without Measuring Utility," American Economic Review, American Economic Association, vol. 106(6), pages 1476-1494, June.
    7. George J. Stigler, 1950. "The Development of Utility Theory. II," Journal of Political Economy, University of Chicago Press, vol. 58, pages 373-373.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Drew, 2016. "The Mechanism of Giffen Behaviour," MPRA Paper 75707, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jmp:jm2016:pzh519. 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: (Christian Zimmermann). General contact details of provider: https://ideas.repec.org/jmp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.