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Some Well-Behaved Composition Functions Involving Nonconcave Argument Functions

Raul Fabella

No 198310, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: Quasi-concavity is the criterion for well-behaveness in our composition functions. Negishi (1963) has shown how to generate quasi-concave composition functions when the argument functions are concave. We show here that one can generate quasi-concave composition functions even when the argument functions are nonconcave. The trick is to find interesting and "compatible" subfamilies in the quasi-concave family that, in composition, compensate for non-concavity of the argument functions and as a result keep the composition function within the quasi-concave family.

Date: 1983-10
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Published as UPSE Discussion Paper No. 1983-10, October 1983

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