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Some Well-Behaved Composition Functions Involving Nonconcave Argument Functions

Author

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  • Raul V. Fabella

    (School of Economics, University of the Philippines Diliman)

Abstract

Quasi-concavity is the criterion for well-behaveness in our composition functions. Negishi (1963) has shown how to generate quasi-concave composition functions when the argument functions are concave. We show here that one can generate quasi-concave composition functions even when the argument functions are nonconcave. The trick is to find interesting and "compatible" subfamilies in the quasi-concave family that, in composition, compensate for non-concavity of the argument functions and as a result keep the composition function within the quasi-concave family.

Suggested Citation

  • Raul V. Fabella, 1983. "Some Well-Behaved Composition Functions Involving Nonconcave Argument Functions," UP School of Economics Discussion Papers 198310, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:198310
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