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Bertrand Crettez, Naila Hayek and Jean-Michel Courtault |
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''On the differentiability of the benefit function'' |
( 2004, Vol. 4 No.5 ) |
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The benefit function, introduced by Luenberger, provides a tool for well-defined cardinal comparisons of different bundles of goods. It also allows to study in an orignal way optimal consumers and firms choices, Pareto-optimality etc... In this note we prove that the benefit function is differentiable under standard conditions. This property is useful in order to study optimal choices. |
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Keywords: Benefit function |
JEL: D6 - Welfare Economics: General |
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Manuscript Received : Mar 24 2004 | | Manuscript Accepted : Mar 24 2004 |
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