Conditioning variables on consumer choices are conventionally included in demand functions additively. We identify the underlying utility maximisation problem. There must be base consumption levels efficiently set which vary with the conditioning variables. A special case is quasi-homothetic preferences.
E. Randon, P. Simmons (2010). Base consumption levels and fixed costs. ECONOMICS LETTERS, 108, 222-224 [10.1016/j.econlet.2010.05.001].
Base consumption levels and fixed costs
RANDON, EMANUELA;
2010
Abstract
Conditioning variables on consumer choices are conventionally included in demand functions additively. We identify the underlying utility maximisation problem. There must be base consumption levels efficiently set which vary with the conditioning variables. A special case is quasi-homothetic preferences.File in questo prodotto:
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