WEAKENING THE STRONG CONVEXITY OF PREFERENCES

Christophe Muller

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: In general models, the strong quasi-concavity of the objective function, sufficient for theoretical properties of demands in consumer theory, is often arbitrary. Then, weaker global concavity conditions that preserve such properties are desirable for such models. We propose a new global concavity condition that implies, for models with several nonlinear constraints: the local uniqueness and the smoothness of the decision functions, and the negativity of the generalised substitution matrix. This condition can be used to specify more general and more flexible economic models.

Keywords: Programming Models; Consumer Economics: Theory; Household Production (search for similar items in EconPapers)
Pages: 40 pages
Date: 2005-12
New Economics Papers: this item is included in nep-upt
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Published by Ivie

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2005-36.pdf Fisrt version / Primera version, 2005 (application/pdf)

Related works:
Working Paper: Weakening the Strong Convexity of Preferences (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2005-36

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