Reference

Andrea Attar, Thomas Mariotti, and François Salanié, On a Class of Smooth Preferences, TSE Working Paper, n. 17-799, April 2017.

Abstract

We construct a complete space of smooth strictly convex preference relations defined over physical commodities and monetary transfers. This construction extends the classic one by assuming that preferences are monotone in transfers, but not necessarily in all commodities. This provides a natural framework to perform genericity analyses in situations involving inventory costs or decisions under risk.

Keywords

Smooth Preferences; Nonmonotonicity;

JEL codes

  • C60: General
  • D11: Consumer Economics: Theory