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Injectivity and the Law of Demand

Roy Allen

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Abstract: Establishing that a demand mapping is injective is core first step for a variety of methodologies. When a version of the law of demand holds, global injectivity can be checked by seeing whether the demand mapping is constant over any line segments. When we add the assumption of differentiability, we obtain necessary and sufficient conditions for injectivity that generalize classical \cite{gale1965jacobian} conditions for quasi-definite Jacobians.

Date: 2019-08
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Handle: RePEc:arx:papers:1908.05714