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Demand Theory: Preferences

  • Michael R. Hammock
  • J. Wilson Mixon
Chapter
  • 1.6k Downloads

Abstract

The economic analysis of consumer behavior begins with a model of rational behavior. The consumer is assumed to have a well-defined utility function that, coupled with a specification of the constraints facing the consumer, implies a specific action. This chapter develops and illustrates the nature of a utility function. The next two chapters add specifications of the constraints that face the consumer and derive the model’s implications.

Keywords

Utility Function Marginal Utility Utility Level Indifference Curve Bliss Point 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References14

  1. 1.
    Arrow KJ, Chenery HB, Minhas BS, Solow RM (1961) Capital-labor substitution and economic efficiency. Rev Econ Stat 43:225–250CrossRefGoogle Scholar
  2. 2.
    Cobb CW, Douglas PH (1928) A theory of production. Am Econ Rev 18(Suppl.):139–165Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2013

Authors and Affiliations

  • Michael R. Hammock
    • 1
  • J. Wilson Mixon
    • 2
  1. 1.Department of Economics and FinanceMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Berry CollegeMount BerryUSA

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