Preference Conditions for Invertible Demand Functions
成果类型：
Article
署名作者：
Diasakos, Theodoros M.; Gerasimou, Georgios
署名单位：
University of Stirling; University of St Andrews
刊物名称：
AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
ISSN/ISSBN：
1945-7669
DOI：
10.1257/mic.20190262
发表日期：
2022
页码：
113-138
关键词：
摘要：
It is frequently assumed in several domains of economics that demand functions are invertible in prices. At the primitive level of preferences, however, the corresponding characterization has remained elusive. We identify necessary and sufficient conditions on a utility-maximizing consumer's preferences for her demand function to be continuous and invertible: strict convexity, strict monotonicity, and differentiability in the sense of Rubinstein (2006). We further show that Rubinstein differentiability is equivalent to the indifference sets being smooth, which is weaker than Debreu's (1972) notion of preference smoothness. We finally discuss implications of our analysis for demand functions that satisfy the strict law of demand.
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