Utility functions of several variables are ubiquitous in economics. Their maximization requires inversion of the gradient map. Using convex analysis tools, we provide a representation of an extension of this inverse that accounts for possible constraints. To solve economic equilibrium problems, the utility functions of the agents are frequently aggregated into a representative (agent’s) utility function. We establish regularity and inversion properties of such representative utility functions.
Multivariable Utility Functions / Chiarolla, Maria; Ulrich G., Haussmann. - In: SIAM JOURNAL ON OPTIMIZATION. - ISSN 1052-6234. - STAMPA. - 19:(2008), pp. 1511-1533. [10.1137/070702266]
Multivariable Utility Functions
CHIAROLLA, Maria;
2008
Abstract
Utility functions of several variables are ubiquitous in economics. Their maximization requires inversion of the gradient map. Using convex analysis tools, we provide a representation of an extension of this inverse that accounts for possible constraints. To solve economic equilibrium problems, the utility functions of the agents are frequently aggregated into a representative (agent’s) utility function. We establish regularity and inversion properties of such representative utility functions.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
