The monotonicity of individual and market demand.
This paper studies the monotonicity of individual and market demand with the aid of the indirect utility function. We identify sufficient (and in a sense, necessary) conditions on an agent's indirect utility which will guarantee that he has a monotonic demand function. Our conditions also point to...
| Published in: | Econometrica Vol. 68; no. 4; pp. 911 - 931 |
|---|---|
| Main Author: | |
| Format: | Article |
| Published: |
Wiley-Blackwell
July 2000
|
| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=512991432&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 512991432 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00129682 ECN jtl: Econometrica issn: 00129682 maglogo: N pubinfo: dt: July 2000 vid: 68 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 512991432 10.1111/1468-0262.00141 ppf: 911 ppct: 20 formats: tig: atl: The monotonicity of individual and market demand. aug: au: Quah, John K.-H. su: Mathematical models of economics Substitution (Economics) Utility theory Mathematical models of income distribution Marginal utility Economic demand Mathematical models sug: subj: Mathematical models of economics Substitution (Economics) Utility theory Mathematical models of income distribution Marginal utility Economic demand Mathematical models ab: This paper studies the monotonicity of individual and market demand with the aid of the indirect utility function. We identify sufficient (and in a sense, necessary) conditions on an agent's indirect utility which will guarantee that he has a monotonic demand function. Our conditions also point to a natural way of extending the result of Hildenbrand (1983). Hildenbrand showed that market demand is monotonic if the income distribution has a downward sloping density, even though individual agents' demand function might violate monotonicity. Using the indirect utility function, we introduce a measure of violations of individual monotonicity that allows us to identify a larger class of density functions that will generate a monotonic market demand. Reprinted by permission of the Econometric Society. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|