The nonconcavity of money-metric utility: A new formulation and proof

被引：3
|
作者：
Khan, M. Ali [1 ]
Schlee, Edward E. [2 ]
机构：
[1] Johns Hopkins Univ, Dept Econ, Baltimore, MD 21218 USA
[2] Arizona State Univ, Dept Econ, Tempe, AZ 85287 USA
来源：
ECONOMICS LETTERS | 2017年 / 154卷
关键词：
Money metric; Expenditure function; Least-concave representation; DEMAND THEORY;
D O I：
10.1016/j.econlet.2017.02.007
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We offer a new, succinct proof of the fact that the money metric utility is concave for any preference relation representable by a concave function if and only if the indirect utility is affine in wealth. Our proof exploits the existence of a least concave representation established in Debreu (1976), and brings into salience the observation that the money-metric utility to be itself a least-concave representation of the preferences if it is concave. This observation is apparently new. (C) 2017 Elsevier B.V. All rights reserved.
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页码：10 / 12
页数：3
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