Files in this item
Preference conditions for invertible demand functions
Item metadata
dc.contributor.author | Diasakos, Theodoros | |
dc.contributor.author | Gerasimou, Georgios | |
dc.date.accessioned | 2022-04-27T11:30:15Z | |
dc.date.available | 2022-04-27T11:30:15Z | |
dc.date.issued | 2022-05-01 | |
dc.identifier | 277812996 | |
dc.identifier | 56cf8b1a-e1ca-4625-99fc-42ef93ef2529 | |
dc.identifier | 000796357900004 | |
dc.identifier | 85130596956 | |
dc.identifier.citation | Diasakos , T & Gerasimou , G 2022 , ' Preference conditions for invertible demand functions ' , American Economic Journal: Microeconomics , vol. 14 , no. 2 , pp. 113-138 . https://doi.org/10.1257/mic.20190262 | en |
dc.identifier.issn | 1945-7669 | |
dc.identifier.other | ORCID: /0000-0003-3712-3154/work/112333561 | |
dc.identifier.uri | https://hdl.handle.net/10023/25253 | |
dc.description.abstract | It is frequently assumed in several domains of economics that demand functions are invertible in prices. At the primitive level of preferences, however, the corresponding characterization has remained elusive. We identify necessary and sufficient conditions on a utility-maximizing consumer’s preferences for her demand function to be continuous and invertible: strict convexity, strict monotonicity, and differentiability in the sense of Rubinstein (2006). We further show that Rubinstein differentiability is equivalent to the indifference sets being smooth, which is weaker than Debreu’s (1972) notion of preference smoothness. We finally discuss implications of our analysis for demand functions that satisfy the “strict law of demand.” | |
dc.format.extent | 840107 | |
dc.language.iso | eng | |
dc.relation.ispartof | American Economic Journal: Microeconomics | en |
dc.subject | HB Economic Theory | en |
dc.subject | T-NDAS | en |
dc.subject.lcc | HB | en |
dc.title | Preference conditions for invertible demand functions | en |
dc.type | Journal article | en |
dc.contributor.institution | University of St Andrews. School of Economics and Finance | en |
dc.identifier.doi | 10.1257/mic.20190262 | |
dc.description.status | Peer reviewed | en |
This item appears in the following Collection(s)
Items in the St Andrews Research Repository are protected by copyright, with all rights reserved, unless otherwise indicated.