An Alternative Interpretation of the Houshold's Optimization Problem

D. Rajagopal

Working Papers from Ryerson Polytechnical Institute - Department of Economics

Abstract: This note is an invitation to academic economists to broaden the way in which we presant and interpret the household's optimization problem to out students in Microeconomics course. It suggests that while maximizing utility subject to a budget constraint is mathematically equivalent to minimizing expenditures for a given target level of utility, the psychological implications of these alternatives presentations of the optimization problem may be quite different.

Keywords: CONSUMPTION; HOUSEHOLD; OPTIMIZATION (search for similar items in EconPapers)
JEL-codes: A29 D11 (search for similar items in EconPapers)
Pages: 7 pages
Date: 1998
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:fth:ryerso:12

Access Statistics for this paper

More papers in Working Papers from Ryerson Polytechnical Institute - Department of Economics RYERSON POLYTECHNICAL INSTITUTE, DEPARTMENT OF ECONOMICS, 350 VICTORIA ST. TORONTO ONTARIO M5B 2K3 CANADA.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().