Psychophysical Foundations of the Cobb-Douglas Utility Function

Authors :: Rossella Argenziano
Itzhak Gilboa
Department of Economics
University of Essex
Groupement de Recherche et d'Etudes en Gestion à HEC (GREGH)
Ecole des Hautes Etudes Commerciales (HEC Paris)-Centre National de la Recherche Scientifique (CNRS)
HEC Research Paper Series
Publication Year :: 2018
Publisher :: HAL CCSD, 2018.
Abstract: Relying on a literal interpretation of Weber's law in psychophysics, we show that a simple condition of independence across good categories implies the Cobb-Douglas preferences.

Subjects :: Simple (abstract algebra)
Psychophysics
Literal interpretation
Independence (mathematical logic)
Cobb-Douglas
[SHS.GESTION]Humanities and Social Sciences/Business administration
Function (mathematics)
Semi-Order
CobB
Mathematical economics
JEL: D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D11 - Consumer Economics: Theory
Mathematics
Weber's Law

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