Non-monotonic utility functions for microeconomic analysis of sufficiency economy

Suriya, Komsan (2011): Non-monotonic utility functions for microeconomic analysis of sufficiency economy.

Abstract

This study invents four types of non-monotonic utility functions that suit the sufficiency economy. With these utility functions, an individual may not get higher utility when consume more goods. Therefore, an individual requires an optimal level of income rather than a maximized level of income to achieve the highest utility.

• Item Type: MPRA Paper
• Language: English
• Keywords: sufficiency economy, utility function, microeconomic analysis, consumption, optimality
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development

References

Binger, Brian and Elizabeth Hoffman. 1998. Microeconomics with Calculus. 2nd ed. Massachusetts: Addison-Wesley.

Calkins, Peter. 2008. The Sufficiency Economy at the Edges of Capitalism. [online]www.sufficiencyeconomy.org/old/en/files/25.pdf

Mas-Colell, Andreu, Michael Whinston and Jerry Green. 1995. Microeconomic Theory. New York: Oxford University Press.

Piboolsravut, Priyanut. 2000. Sufficiency Economy: An Introductory Note. Excerpt partly from the conference of 10th UNCTAD, February 2000, Bangkok.

Pindyck, Robert and Daniel Rubinfeld. 1998. Microeconomics. 4th ed. New Jersey: Prentice Hall.

Sachayansrisakul, Navarat. 2009. Sufficiency Economy: A Reasonable Approach for Thailand’s Future. NIDA Development Journal 49, 2, pp. 1-22.

Suriya, Komsan. 1999. Optimal productivity for a happy life. Journal of Economics Chiang Mai University 3, 3 (September – December), pp. 12-15. (in Thai)

Varian, Hal R. 1999. Intermediate Microeconomics: A Modern Approach. 5th ed. New York: W.W. Norton & Company.