Dominique, C-Rene (2008): Walrasian Solutions Without Utility Functions.
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This note reviews consumers’ preference orderings in economics and shows that irrationality is a poor explanation for apparent violations of some axioms of order. Apparent violations seem to be better explained by the fact that consumers’ utility functions, if they exist at all, might not even belong to the class of quasi-concave functions. However, the main task of markets is the determination of equilibrium price vectors. The note shows in addition that, in Walrasian structures, quasi-concave utility functions are unnecessary for the determination of equilibrium price vectors.
|Item Type:||MPRA Paper|
|Original Title:||Walrasian Solutions Without Utility Functions|
|Keywords:||Walrasian structures, preference orderings, irrationality, utility functions, and equilibrium price vectors|
|Subjects:||A - General Economics and Teaching > A1 - General Economics
A - General Economics and Teaching > A1 - General Economics > A10 - General
A - General Economics and Teaching > A1 - General Economics > A14 - Sociology of Economics
|Depositing User:||C-Rene Dominique|
|Date Deposited:||30. May 2008 06:51|
|Last Modified:||21. Feb 2013 02:33|
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