Arbeitspapier

Structures of rational behavior in economics

Describing individual behavior, we will be concerned with an axiom system, which can be interpreted by Shephard's distance function. Based on this function, one can discover the individual's preference relation, from which the individual's demand function can be derived. We will realize that the axiom system describes rational behavior, satisfying the Strong Axiom of Revealed Preference. The axiom system presented in this article is closely related to a former one describing consumer behavior by income compensation functions. These different approaches will help to illuminate choice behavior from different points of view. We will also see that the axiom system presented in this article can be interpreted by the economic quantity index in welfare theory and by distance functions in producer theory.

Language
Englisch

Bibliographic citation
Series: KIT Working Paper Series in Economics ; No. 136

Classification
Wirtschaft
Social Choice; Clubs; Committees; Associations
Bargaining Theory; Matching Theory
Subject
Economic Models
Demand Functions
Distance Functions
Rationality
Producer Theory
Welfare Theory

Event
Geistige Schöpfung
(who)
Fuchs-Seliger, Susanne
Event
Veröffentlichung
(who)
Karlsruher Institut für Technologie (KIT), Institut für Volkswirtschaftslehre (ECON)
(where)
Karlsruhe
(when)
2019

DOI
doi:10.5445/IR/1000098471
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Fuchs-Seliger, Susanne
  • Karlsruher Institut für Technologie (KIT), Institut für Volkswirtschaftslehre (ECON)

Time of origin

  • 2019

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