Analyzing Consumer’s Behaviour in Risk and Uncertainty Situations
International Journal of Economic Practices and Theories
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Title |
Analyzing Consumer’s Behaviour in Risk and Uncertainty Situations
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Creator |
Marinescu, Daniela Elena
Marin, Dumitru Manafi, Ioana |
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Subject |
Cybernetics
compensated demand, risk aversion, Slutsky Equation, uncertainty, uncompensated demand C61, D11, D53 |
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Description |
In the paper we will generalize the Slutsky Equation in risk and uncertainty situations using the compensated and uncompensated demand and some local measures of risk aversion. We will obtain a nonlinear optimization problem of maximizing the expected utility; this problem will be solved using the Kuhn-Tucker method. We use the results to analyze the income and substitution effects of price changes on demand in risk and uncertainty conditions.
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Publisher |
International Journal of Economic Practices and Theories
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Contributor |
The European Social Fund through Sectorial Operational Programme Human Resources Development 2007-2013, project number POSDRU/1.5/59184 “Performance and excellence in postdoctoral research in Romanian economics science domain”.
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Date |
2011-10-15
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.ijept.org/index.php/ijept%20/article/view/14
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Source |
International Journal of Economic Practices and Theories; Vol 1, No 2 (2011); 51-57
2247 – 7225 |
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Language |
eng
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Relation |
http://www.ijept.org/index.php/ijept%20/article/view/14/11
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