Analyzing Consumer’s Behaviour in Risk and Uncertainty Situations

Daniela Elena Marinescu (), Dumitru Marin () and Ioana Manafi (Râmniceanu)
Additional contact information
Daniela Elena Marinescu: Bucharest Academy of Economic Studies
Dumitru Marin: Bucharest Academy of Economic Studies

International Journal of Economic Practices and Theories, 2011, vol. 1, issue 2, 51-57

Abstract: In the paper we will generalize the Slutsky Equation in risk and uncertainty situations using the compensated and uncompensated demand and some local measures of risk aversion. We will obtain a nonlinear optimization problem of maximizing the expected utility; this problem will be solved using the Kuhn-Tucker method. We use the results to analyze the income and substitution effects of price changes on demand in risk and uncertainty conditions.

Keywords: Compensated demand; risk aversion; Slutsky Equation; uncertainty; uncompensated demand (search for similar items in EconPapers)
JEL-codes: C61 D11 D53 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ijept.org/index.php/ijept/article/download/14/11 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aes:ijeptp:v:1:y:2011:i:2:p:51-57

Access Statistics for this article

International Journal of Economic Practices and Theories is currently edited by Catalin Boja

More articles in International Journal of Economic Practices and Theories from Academy of Economic Studies - Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Catalin Boja ().