Singular Indifference Curve and Seigniorage

2016 ◽  
Author(s):  
Hak Choi
Keyword(s):  
Indifference Curve

Grossman-Helpman's Singular Indifference Curve

2016 ◽  
Author(s):  
Hak Choi
Keyword(s):  
Indifference Curve

Economics and efficiency

2017 ◽  
Author(s):  
Jan Abel Olsen
Keyword(s):  
Production Function ◽  
Cost Efficiency ◽  
Indifference Curve ◽  
Opportunity Costs ◽  
Consumer Theory ◽  
Important Concept ◽  
Know How ◽  
Trade Offs ◽  
Standard Production

This chapter, the longest in the book, explains the fundamentals of microeconomics and its application to the analysis of health and healthcare. The concepts of scarcity and opportunity costs lie at the heart of the economics discipline. Based on the standard production function with two input factors, the important concept of cost-efficiency is explained; and based on the premise of scarcity in the availability of input factors, the concept of opportunity costs is explained. An important insight from consumer theory is that people make trade-offs. Their preferences and income determine their chosen combination of goods, as illustrated by an indifference curve. An important piece of information for policymakers attempting to intervene in people’s demand for healthy, and unhealthy, goods is to know how sensitive demand is to changing prices and income. The chapter explains and defines elasticities of demand.

scholarly journals Orthogonal strategy based computer-mediated negotiation: Principles and example

2018 ◽  
Vol 46 (6) ◽  
pp. 1036-1060
Author(s):  
Cahyono Susetyo ◽  
Harry Timmermans ◽  
Bauke de Vries
Keyword(s):  
Decision Making ◽  
Computer System ◽  
Indifference Curve ◽  
Decision Makers ◽  
Second Phase ◽  
Face Negotiation ◽  
Computer Mediated ◽  
Decision Making Processes ◽  
Multi Stakeholder ◽  
Optimum Solution

Previous efforts to improve stakeholders’ involvement in planning and decision-making processes mostly put planners and decision makers as the ones who decide which solution is the best for the decision problems. In bottom-up planning and decision-making processes that supposedly involve stakeholders as much as possible, the most common practice is that when stakeholders have different preferences about the decision issues, supra decision makers such as planners and experts gather stakeholders’ preferences, and then, using their expertise and experience, decide what is the best choice for stakeholders. We approach the involvement of stakeholders in planning and decision-making not by relying on planners’ expertise but from a negotiation perspective. Previous works related to stakeholders’ negotiation mostly require stakeholders to engage in a face-to-face negotiation that seldom involves a computer system to improve the process. In this paper, we develop a negotiation system to support multi-issue and multi-stakeholder decision-making problems. In our approach, stakeholders do not directly interact with each other. Their proposals are submitted to a system that produces counter-proposals to reduce the differences among stakeholders’ proposals. Therefore, stakeholders do not exchange their preferences directly, but rather preference elicitations are mediated by the system. This approach is called computer-mediated negotiation. The system itself is based on the principle of an orthogonal strategy. Our computer-mediated negotiation protocol consists of two main phases. The first phase is the preference elicitation phase, which measures stakeholders’ utility functions. The second phase is the e-negotiation phase, in which stakeholders make their proposals and the computer system provides suggestions to improve them. To simulate real-world negotiations where stakeholders make proposals and counter-proposals in a series of negotiation rounds, we implemented the indifference curve approach to enable stakeholders to make incremental changes of their proposals during negotiation. The results from our experiment suggest that our method can produce an optimum solution for a multi-issue and multi-stakeholder decision problem by moving stakeholders’ proposals closer to one another.

scholarly journals Indifference Curve Supremacy in Tourism Consumption Behaviour: Case of Zimbabwe Destination

2015 ◽  
Vol 2 (2) ◽  
pp. 27
Author(s):  
Farai Chigora ◽  
Clever Vutete
Keyword(s):  
Price Discrimination ◽  
Quantitative Research ◽  
Consumer Behaviour ◽  
Economies Of Scale ◽  
Indifference Curve ◽  
Tourism Destination ◽  
Qualitative And Quantitative ◽  
High Unemployment Rate ◽  
Research Designs ◽  
Tourism Destinations

The study was based on the indifference curve analysis as an economics concept that is premised on assessing consumer behaviour driven by their budgets, products choice and maximum satisfaction. The model was applied in the Zimbabwe tourism destination since the behaviour of the tourists has changed from positive to a negative over its offerings. The research was done using both qualitative and quantitative research designs which is a mixed method. The results of the research shows that the budgets of tourists are failing to meet the prices charged in the Zimbabwean tourism destination. Local participants pointed on the economic downfall which has reduced the value of their disposable income associated with high unemployment rate. Foreign respondents revealed that the Zimbabwean tourism destination is expensive for holiday makers as compared to other tourism destinations in the region. These factors have reduced the totals satisfaction of tourists in Zimbabwe. The research therefore recommended price discrimination charging relatively low prices to local tourists, intensive campaigns to positively change the behaviour of local tourists and mergers so as to achieve economies of scale and charge low prices.

Consumer Utility Function: Initial Findings Through Lagrange Optimization Method

2012 ◽  
Vol 1 (1) ◽  
Author(s):  
Ferdinand C. Paurom
Keyword(s):  
Utility Function ◽  
Rational Choice ◽  
Consumer Choice ◽  
Indifference Curve ◽  
Optimization Method ◽  
Negative Slope ◽  
United States Department ◽  
Department Of Agriculture ◽  
The Us ◽  
Pork Consumption

The main problem in utility theory or its variant theory of consumer choice is that consumer is assumed capable of rational choice; yet, such choice is incapable of translating itself into rational numbers. On this account the assumption of rational choice remains dubious. This paper utilized Lagrange optimization method to approximate consumer utility function measured in cardinal units. The utility function was derived from the US deflated annual per capita consumption of pork and beef (United States department of Agriculture, USDA, 1998). This paper demonstrates that when quantities of pork are consumed, given the price, in effect gives diminishing marginal levels of pork consumption in opposite monotonic direction with beef consumption. Changes in the level of consumption approximate cardinally the consumer utility function consistent with the properties of indifference curve and with the axioms of consumer rational choice. This paper has two objectives: 1) to provide further insights on the measurability of consumer utility, and 2) to provide basis for forecasting the demand for pork and beef. This paper concluded that Pork-beef substitution of US consumers is an exponential function which exhibits pattern of the textbook-defined indifference curve and has the features of negative slope, convexity and asymptote. The function is also consistent with the axioms of consumer rational choice.   Keywords - consumer utility function, lagrange optimization method

scholarly journals Stochastic dominance theory for location-scale family

2006 ◽  
Vol 2006 ◽  
pp. 1-10 ◽  
Author(s):  
Wing-Keung Wong
Keyword(s):  
Stochastic Dominance ◽  
Indifference Curve ◽  
Efficient Set ◽  
Alternative Proof ◽  
Efficient Sets ◽  
Scale Parameters ◽  
General Utility ◽  
The Mean ◽  
Mean Variance ◽  
Variance Criterion

Meyer (1987) extended the theory of mean-variance criterion to include the comparison among distributions that differ only by location and scale parameters and to include general utility functions with only convexity or concavity restrictions. In this paper, we make some comments on Meyer's paper and extend the results from Tobin (1958) that the indifference curve is convex upwards for risk averters, concave downwards for risk lovers, and horizontal for risk neutral investors to include the general conditions stated by Meyer (1987). We also provide an alternative proof for the theorem. Levy (1989) extended Meyer's results by introducing some inequality relationships between the stochastic-dominance and the mean-variance efficient sets. In this paper, we comment on Levy's findings and show that these relationships do not hold in certain situations. We further develop some properties among the first- and second-degree stochastic dominance efficient sets and the mean-variance efficient set.

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