 Recoverability revisitedYuhki Hosoya Journal of Mathematical Economics, 2020, vol. 90, issue C, 31-41 Abstract: This study considers the uniqueness problem of the preference relation corresponding to a demand function, which is called the “recoverability problem”. We show that if a demand function has sufficiently wide range and is income-Lipschitzian, then there exists a unique corresponding upper semi-continuous preference relation. Moreover, we explicitly construct a utility function that represents this preference relation. Compared with related research, a feature of our result is that it ensures not only the uniqueness, but also the existence of the corresponding upper semi-continuous preference relation. Further, we introduce two axioms related to demand functions, and show that these axioms are equivalent to the continuity of our preference relation in the interior of the consumption set. In addition to these results, we present three examples that explain why our requirements (including the upper semi-continuity of preference relations and the wide range requirement and income-Lipschitzian property of demand functions) are necessary, and a further two examples in which there is no continuous preference relation corresponding to the given demand function. Keywords: Demand function; Recoverability; Income-Lipschitzian; Expenditure function; NLL axiom; C axiom (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:90:y:2020:i:c:p:31-41 DOI: 10.1016/j.jmateco.2020.05.009 Access Statistics for this article Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii More articles in Journal of Mathematical Economics from Elsevier |
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