New answers tagged consumer-theory
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Proof of the tangency condition in UMP
The proof below is not very rigorous - I do not discuss discontinuities - but I think it captures the logic well.
From Wikipedia:
Suppose $f$ is a function of one real variable defined on an ...
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3
votes
Convexity of preferences (dissimilar definitions)
For Q 1:
Let me give you a preference relation on $\mathbb{R}^2_+$
$(x_1, y_1) \succsim (x_2, y_2)$ if and only if
$(x_1^2 + y_1^2 > x_2^2 + y_2^2)$ or $(x_1^2 + y_1^2 = x_2^2 + y_2^2 \ \wedge x_1 \...
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