Consumption Theory in Terms of Revealed Preference
TL;DR: Little as mentioned in this paper showed that if enough judiciously selected price-quantity situations are available for two goods, a locus which is the precise equivalent of the conventional indifference curve can be defined.
Abstract: A DECADE ago I suggested that the economic theory of consumer's behaviour can be largely built up on the notion of " revealed.preference ". By comparing the costs of different combinations of goods at different relative price situations, we can infer whether a given batch of goods is preferred to another batch; the individual guinea-pig, by his market behaviour, reveals his preference pattern-if there is such a consistent pattern. Recently, Mr. Ian M. D. Little of Oxford University has made an important contribution to this field. 1 In addition to showing the changes in viewpoint that this theory may lead to, he has presented an ingenious proof that if enough judiciously selected price-quantity situations are available for two goods, we may define a locus which is the precise equivalent of the conventional indifference curve. I should like, briefly, to present an alternative demonstration of this same result. While the proof is a direct one, it requires a little more mathematical reasoning than does his.
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TL;DR: In this article, the authors extend activity analysis into consumption theory and assume that goods possess, or give rise to, multiple characteristics in fixed proportions and that it is these characteristics, not goods themselves, on which the consumer's preferences are exercised.
Abstract: Activity analysis is extended into consumption theory. It is assumed that goods possess, or give rise to, multiple characteristics in fixed proportions and that it is these characteristics, not goods themselves, on which the consumer’s preferences are exercised.
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Cites background or methods from "Consumption Theory in Terms of Reve..."
...Just as the conceptual experiment implicit in rcecalcd preference implies "overcompensation" in the conventional analysis (see Samuelson 1948, 1953a), so the efficiency effect leads to "external overcompensation" additional to private overcompensation....
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...We can then draw on some of the analysis that exists, relating factor inputs to outputs of goods, as in Samuelson (1953b). Goods in our model correspond to factors in the production model, and characteristics in our model to commodities in the production model....
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...The model could be analyzed in a similar way to that used by Samuelson (1953b) and others in analyzing production, although the existence of much jointness among outputs in the present model pre-...
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TL;DR: This literature review of decision making (how people make choices among desirable alternatives), culled from the disciplines of psychology, economics, and mathematics, covers the theory of riskless choices, the application of the theory to welfare economics,The theory of risky choices, transitivity of choices, and the theories of games and statistical decision functions.
Abstract: This literature review of decision making (how people make choices among desirable alternatives), culled from the disciplines of psychology, economics, and mathematics, covers the theory of riskless choices, the application of the theory of riskless choices to welfare economics, the theory of risky choices, transitivity of choices, and the theory of games and statistical decision functions The theories surveyed assume rational behavior: individuals have transitive preferences (“… if A is preferred to B, and B is preferred to C, then A is preferred to C”), choosing from among alternatives in order to “… maximize utility or expected utility” 209-item bibliography (PsycINFO Database Record (c) 2006 APA, all rights reserved)
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07 Jun 2004TL;DR: In this paper, the authors present an overview of DEA models for productivity, efficiency, and data envelopment analysis, including non-radial models and Pareto-Koopmans measures of technical efficiency.
Abstract: 1. Introduction and overview 2. Productivity, efficiency, and data envelopment analysis 3. Variable returns to scale: separating technical and scale efficiencies 4. Extensions to the basic DEA models 5. Non-radial models and Pareto-Koopmans measures of technical efficiency 6. Efficiency measurement without convexity assumption: free disposal hull analysis 7. Dealing with slacks: assurance region/cone ratio analysis, weak disposability, and congestion 8. Efficiency of merger and break up of firms 9. Efficiency analysis with market prices 10. Nonparametric approaches to production analysis 11. Measuring total factor productivity change over time 12. Stochastic approaches to data envelopment analysis 13. Looking ahead.
687 citations