New answers tagged consumer-theory
5
Yes if you assume that the sub-utility functions are concave. Notice that this is a standard assumption as otherwise, the utility function $u = \sum_i f_i$ is not guaranteed to be concave (nor quasi-concave).
Let denote by $u_i = \dfrac{\partial u}{\partial x_i}$ and by $u_{i,j} = \dfrac{\partial^2 u}{\partial x_i \partial x_j}$. By additivity $u_{i,j} = 0$ ...
1
As elsewhere in academia, in economics as well, ideas are disseminated through:
Workshops. These are usually organized by universities or other research institutions and if the workshop
Seminars. These are similar to the above mentioned workshops but workshops are typically interactive whereas seminars are usually places where people can present their ...
1
Might be better for Academia:SE, but I'll give my two thoughts anyway.
The primary means of academic discourse is through peer-reviewed journal publications. Therefore, the simple advice is to write a paper and try to publish it in a (serious) economic journal. Here is a list of journals in decreasing order of reputation. There are different rankings used in ...
3
You question can be answered using a revealed preference argument.
Let $B = \{q \in \mathbb{R}^n_+| p' q \le m\}$ be some budget set of a consumer (i.e. $B$ gives all possible bundles that the consumer can choose).
Let $q^\ast$ be the optimal choice from $B$, i.e. the bundle that optimizes the utility. Then for any other bundle $q \in B$, it must be that $u(...
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In general the demand for a certain good (say from a consumer) can be written as a function of the prices of all available goods and the total amount of money that the consumer has available.
Take the setting of two goods, $q_1$ and $q_2$ with prices $p_1$ and $p_2$ and total income $y$. Then the demands can be written as:
$$
q_1 = d_1(p_1, p_2, y)\\
q_2 = ...
0
In general, a demand function (for a certain good) gives the demanded quantity as a function of the price of the good and a set of other variables. These other variables include things like prices of the other goods, income, weather, etc.
If we consider a framework of two goods and if we excluding all other variables, except for the prices this gives two ...
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