Pregled bibliografske jedinice broj: 840199
Solving the consumer’s utility-maximization problem with CES and Cobb-Douglas utility function via mathematical inequalities
Solving the consumer’s utility-maximization problem with CES and Cobb-Douglas utility function via mathematical inequalities // Optimization Letters, 11 (2017), 4; 875-884 doi:10.1007/s11590-016-1052-2 (međunarodna recenzija, kratko priopcenje, znanstveni)
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Naslov
Solving the consumer’s utility-maximization problem with CES and Cobb-Douglas utility function via mathematical inequalities
Autori
Kojić, Vedran
Izvornik
Optimization Letters (1862-4472) 11
(2017), 4;
875-884
Vrsta, podvrsta i kategorija rada
Radovi u časopisima, kratko priopcenje, znanstveni
Ključne riječi
the consumer’s utility–maximization problem ; CES and Cobb-Douglas utility function ; mathematical inequalities ; without calculus
Sažetak
This paper presents a new, non-calculus approach to solving the consumer’s utility– maximization problem with constant elasticity of substitution (CES) utility function, as well as with Cobb-Douglas utility function in case of n≥2 commodities. Instead of using the Lagrange multiplier method or some other method based on differential calculus of several variables which might give complicated terms and equations difficult to handle, the utility– maximization problems are solved by using Jensen’s inequality and weighted arithmetic- geometric mean (weighted AM–GM) inequality. In comparison with calculus methods, such approach does not require checking first and second order conditions.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
Citiraj ovu publikaciju:
Časopis indeksira:
- Current Contents Connect (CCC)
- Web of Science Core Collection (WoSCC)
- Science Citation Index Expanded (SCI-EXP)
- SCI-EXP, SSCI i/ili A&HCI
- Scopus
