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The Generalized Fechner-Thurstone Direct Utility Function and Some of its Uses

  • R. L. Basmann
  • D. J. Slottje
  • K. Hayes
  • J. D. Johnson
  • D. J. Molina

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 316)

Table of contents

  1. Front Matter
    Pages i-viii
  2. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 1-8
  3. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 9-32
  4. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 33-64
  5. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 65-76
  6. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 77-111
  7. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 113-125
  8. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 127-135
  9. R. L. Basmann, D. J. Slottje, K. Hayes, J. D. Johnson, D. J. Molina
    Pages 137-138
  10. Back Matter
    Pages 139-159

About this book

Introduction

In this book the foundations and applicability of the Generalized Fechner-Thurstone Utility Function are laid out. It is shown how by removing the constraint of fixed preferences in the neoclassical consumer theory, utility theory can be used to develop non-parametric indices along with elasticities of the marginal rates of substitutions. It is also shown that whereas the existence of a fixed preference utility function is not always guaranteed for different demand functions, there will always exist at least one Generalized Fechner-Thurstone Direct Utility Function. Furthermore, analysis using the Fechner-Thurstone Direct Utility Function is clear and simple and does not rely on ad hoc Taylor expansions. The construction of different true-cost-of-living indices, the comparison of North American consumers, and a habit formation model are developed to show the usefulness of the Generalized Fechner-Thurstone Direct Utility Function.

Keywords

consumer foundation utility utility theory

Authors and affiliations

  • R. L. Basmann
    • 1
  • D. J. Slottje
    • 2
  • K. Hayes
    • 2
  • J. D. Johnson
    • 4
  • D. J. Molina
    • 3
  1. 1.Department of EconomicsSUNY BinghamtonBinghamtonUSA
  2. 2.Department of EconomicsSouthern Methodist UniversityDallasUSA
  3. 3.Department of EconomicsUniversity of North TexasDentonUSA
  4. 4.Department of EconomicsUniversity of Mississippi UniversityUSA

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4684-9401-3
  • Copyright Information Springer Science+Business Media New York 1988
  • Publisher Name Springer, New York, NY
  • eBook Packages Springer Book Archive
  • Print ISBN 978-0-387-96853-7
  • Online ISBN 978-1-4684-9401-3
  • Series Print ISSN 0075-8442
  • Series Online ISSN 2196-9957
  • Buy this book on publisher's site
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