Price Dependent Preferences.
This article discusses the implications of price dependent preferences on individual demand behavior. When market prices and normal prices are treated as distinct and independent variables, the resulting model is extremely tractable. I introduce the market price demand functions in Section I. They...
| Publicado en: | American Economic Review Vol. 67; no. 2; pp. 64 - 76 |
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| Formato: | Artículo |
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American Economic Association
Mar1977
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4512408&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4512408 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Mar1977 vid: 67 iid: 2 pid: 22 pub: American Economic Association artinfo: ui: 4512408 ppf: 64 ppct: 12 formats: tig: atl: Price Dependent Preferences. aug: au: Pollak, Robert A. affil: University of Pennsylvania su: Prices Behavior Hypothesis Money market Budget sug: subj: Prices Behavior Hypothesis Money market Budget ab: This article discusses the implications of price dependent preferences on individual demand behavior. When market prices and normal prices are treated as distinct and independent variables, the resulting model is extremely tractable. I introduce the market price demand functions in Section I. They show demand as a function of market prices, total expenditure, and normal prices. Under the relative price hypothesis, the only restriction other than continuity on the demand functions generated by a simultaneous price dependent preference ordering is that they are homogeneous of degree zero in prices and expenditure and satisfy the budget constraint. Put another way, any system of continuous demand functions homogeneous of degree zero in prices and expenditure which satisfies the budget constraint can be rationalized by a simultaneous price dependent preference ordering satisfying the relative price hypothesis. Compensated demand functions can be defined readily in the unconditional model, since it permits comparisons of alternative quantity-price situations. Kalman uses the unconditional model to argue that a generalized Slutsky equation holds under price dependent preferences, but his compensated demand functions cannot be related to observable behavior when the objects of choice are commodity bundles. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1977 holdings: @attributes: islocal: N |
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