Revealed Preference, Lattice Programming and the Dual Consumer Problem

Author(s):  
Elena Antoniadou

Author(s):  
Robert G. Chambers

The theory of a rational consumer characterized by an incomplete preference order is developed using distance functions and the zero-minimum (zero-maximum) principle. The essential comparative-static properties of the associated quantity-dependent and price-dependent demand structures are characterized. Utility functions are derived from distance functions for preference structures satisfying a complete ordering assumption. The Marshall-Hicks demand theory that is based on a utility-maximizing consumer is derived as a special case of rational consumer behavior. The Hicks-Allen demand decomposition is reviewed and a conjugate profit function approach to utility maximization is developed and used to discuss Revealed Preference Theory. The Chapter closes by examining the structural consequences of the independence axiom for d(x,y;g).







Author(s):  
Meagan McCollum ◽  
Rajesh P. Narayanan ◽  
R. Kelley Pace


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