Base consumption levels and fixed costs

Emanuela Randon () and Peter Simmons

Economics Letters, 2010, vol. 108, issue 2, 222-224

Abstract: Conditioning variables on consumer choices are conventionally included in demand functions additively. We identify the underlying utility maximisation problem. There must be base consumption levels efficiently set which vary with the conditioning variables. A special case is quasi-homothetic preferences.

Keywords: Fixed; costs; Quasi-homothetic; preferences (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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