Biased Quantitative Measurement of Interval Ordered Homothetic Preferences
نویسندگان
چکیده
We represent interval ordered homothetic preferences with a quantitative homothetic utility function and a multiplicative bias. When preferences are weakly ordered (i.e. when indifference is transitive), such a bias equals 1. When indifference is intransitive, the biasing factor is a positive function smaller than 1 and measures a threshold of indifference. We show that the bias is constant if and only if preferences are semiordered, and we identify conditions ensuring a linear utility function. We illustrate our approach with indifference sets on a two dimensional commodity space.
منابع مشابه
Trade , Non - Homothetic Preferences , and the Impact of Country Size on Wages ∗
We study the impact of country size on wages in a two-country trade model with monopolistic competition and non-homothetic preferences. Since there is renewed interest in nonhomothetic preferences and variable markups, we revisit standard results on wages obtained using homothetic (CES) preferences. The standard results are that, under free trade, wages are equal and that, with iceberg costs, t...
متن کاملExtended linear-homothetic preferences and the Cournot-Bertrand profit differential∗
This paper introduces the ‘extended linear-homothetic’ preferences to model consumer choice. Specifically, we extend Datta and Dixon’s (2000) ‘standard linear-homothetic’ preferences by adding an additional term to the unit cost function. This term captures the relative importance of price interactions within sectors on the unit cost of utility. In an economy composed of a large number of secto...
متن کاملGeneralized homothetic biorders
In this paper, we study the binary relations R on a nonempty N-set A which are hindependent and h-positive (cf. the introduction below). They are called homothetic positive orders. Denote by B the set of intervals of R having the form [r,+∞[ with 0 < r ≤ +∞ or ]q,∞[ with q ∈ Q≥0. It is a Q>0-set endowed with a binary relation > extending the usual one on R>0 (identified with a subset of B via t...
متن کاملIndex-Number Tests and the Common-Scaling Social Cost-of-Living Index1
For a change in prices, the common-scaling social cost-of-living index is the equal scaling of each individual’s expenditure level needed to restore the level of social welfare to its prechange value. This index does not, in general, satisfy two standard index-number tests. The reversal test requires the index value for the reverse change to be the reciprocal of the original index. And the circ...
متن کاملOn the Generalization of Interval Valued $left( in ,in vee q_{widetilde{k}}right) $-Fuzzy bi-Ideals in Ordered Semigroups
In this paper, we introduce a new sort of interval valued $left(in ,in vee q_{widetilde{k}}^{widetilde{delta }}right) $-fuzzy bi-ideal in ordered semigroups which is the generalization of interval valued $left( in ,in vee q_{%widetilde{k}}right) $-fuzzy bi-ideal and interval valued $left( in ,in vee qright) $-fuzzy bi-ideal of ordered semigroups. We give examples in which we show that these str...
متن کامل