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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.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 | PURE: 277812996 | |
dc.identifier.other | PURE UUID: 56cf8b1a-e1ca-4625-99fc-42ef93ef2529 | |
dc.identifier.other | ORCID: /0000-0003-3712-3154/work/112333561 | |
dc.identifier.other | WOS: 000796357900004 | |
dc.identifier.other | Scopus: 85130596956 | |
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.language.iso | eng | |
dc.relation.ispartof | American Economic Journal: Microeconomics | en |
dc.rights | Copyright © 2022 American Economic Association. This work has been made available online in accordance with publisher policies or with permission. Permission for further reuse of this content should be sought from the publisher or the rights holder. This is the final published version of the work, which was originally published at https://doi.org/10.1257/mic.20190262 | 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.description.version | Publisher PDF | en |
dc.contributor.institution | University of St Andrews. School of Economics and Finance | en |
dc.identifier.doi | https://doi.org/10.1257/mic.20190262 | |
dc.description.status | Peer reviewed | en |
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