We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.
Preferences and normal goods: An easy-to-check necessary and sufficient condition
E. Bilancini;
2010
Abstract
We provide a necessary and sufficient condition for goods to be normal when utility functions are differentiable and strongly quasi-concave. Our condition is equivalent to the condition proposed by Alarie et al. (1990), but it is easier to check: it only requires to compute the minors associated with the border column (or row) of the bordered Hessian matrix of the utility function.File in questo prodotto:
| File | Dimensione | Formato | |
|---|---|---|---|
|
bibo-econlett2.pdf
non disponibili
Licenza:
Non specificato
Dimensione
159.06 kB
Formato
Adobe PDF
|
159.06 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
