RAS Social ScienceЭкономика и математические методы Economics and the Mathematical Methods

  • ISSN (Print) 0424-7388
  • ISSN (Online) 3034-6177

SUBSTITUTION AND COMPLEMENTARITY OF GOODS IN TERMS OF UTILITY FUNCTION

PII
S042473880000616-6-1
DOI
10.7868/S0000616-6-1
Publication type
Article
Status
Published
Authors
Volume/ Edition
Volume 51 / Issue 4
Pages
25-36
Abstract

In The Paper We Consider A Problem Of Characterization Of Utility Functions Which Generates Gross Substitute Demand. Let F Be A Concave Function; We Consider It As A Utility Function Of Some Comsumer Expressed In Terms Of Money. This Means That Demand (At A Price P) Is Formed As Solunion Of The Problem F(X)–P(X) → Max. Such A Function Is A GS-Function If An Increasing Of Price Of Any Good Yields Increasing Of Demand Of Other Goods. We Prove That F Is A GS-Function If And Only If The Conjugate Function F * Is Supermodular. As A Corollary We Prove That Any GS-Function Is Submodular. We Provide Also A Rule For Calculation Of The Derivative Of The Convolution Of Several Concave Functions.

Keywords
concave functions, supermodularity, submodularity, Fenchel duality
Date of publication
01.10.2015
Year of publication
2015
Number of purchasers
1
Views
816

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Higher Attestation Commission

At the Ministry of Education and Science of the Russian Federation

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Scientific Electronic Library