Ordients: Optimization and comparative statics without utility functions

Ludovic Renou and Karl Schlag

Journal of Economic Theory, 2014, vol. 154, issue C, 612-632

Abstract: This paper introduces the concept of ordient for binary relations (preferences), a relative of the concept of gradient for functions (utilities). Ordients have a natural economic interpretation as marginal rates of substitution. Some examples of ordientable binary relations include the lexicographic order, binary relations resulting from the sequential applications of multiple rationales or binary relations with differentiable representations. We characterize the constrained maxima of binary relations through ordients and provide an implicit function theorem and an envelope theorem.

Keywords: Binary relation; Ordient; Maxima; Envelope theorem; Implicit function theorem (search for similar items in EconPapers)
JEL-codes: C6 D01 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:154:y:2014:i:c:p:612-632

DOI: 10.1016/j.jet.2014.09.013

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