Munich Personal RePEc Archive

Subsistence, saturation and irrelevance in preferences

Mitra, Manipushpak and Sen, Debapriya (2014): Subsistence, saturation and irrelevance in preferences.

There is a more recent version of this item available.
[thumbnail of MPRA_paper_60614.pdf]

Download (327kB) | Preview


This paper provides a microeconomic analysis of subsistence consumption in the consumer theory framework. Our key concepts are 'irrelevance' of a good in certain consumption bundles (increasing its amount does not make the consumer better off) and an 'unhappy set' (any bundle outside such a set is preferred to all bundles inside). Using these concepts we axiomatize subsistence and saturation induced irrelevance (SSI) preferences. We also axiomatize a generalized version of Leontief (GL) preferences, for which irrelevance is solely driven by complementarity. Irrelevance in SSI preferences results from the presence of unhappy sets; for GL preferences irrelevance is driven by their absence.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.