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Monotone Preferences
In economics, an agent's preferences are said to be weakly monotonic if, given a consumption bundle x, the agent prefers all consumption bundles y that have more of all goods. That is, y \gg x implies y\succ x. An agent's preferences are said to be strongly monotonic if, given a consumption bundle x, the agent prefers all consumption bundles y that have more of at least one good, and not less in any other good. That is, y\geq x and y\neq x imply y\succ x. This definition defines monotonic increasing preferences. Monotonic decreasing preferences can often be defined to be compatible with this definition. For instance, an agent's preferences for pollution may be monotonic decreasing (less pollution is better). In this case, the agent's preferences for lack of pollution are monotonic increasing. Much of consumer theory relies on a weaker assumption, local nonsatiation. An example of preferences which are weakly monotonic but not strongly monotonic are those represented by a Leontie ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyses what is viewed as basic elements within economy, economies, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and Expenditure, investment expenditure interact; and the factors of production affecting them, such as: Labour (human activity), labour, Capital (economics), capital, Land (economics), land, and Entrepreneurship, enterprise, inflation, economic growth, and public policies that impact gloss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumption (economics)
Consumption refers to the use of resources to fulfill present needs and desires. It is seen in contrast to investing, which is spending for acquisition of ''future'' income. Consumption is a major concept in economics and is also studied in many other social sciences. Different schools of economists define consumption differently. According to mainstream economics, mainstream economists, only the final purchase of newly produced Good (economics), goods and Service (economics), services by individuals for immediate use constitutes consumption, while other types of expenditure — in particular, fixed investment, intermediate consumption, and government spending — are placed in separate categories (see consumer choice). Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g., the selection, adoption, use, disposal and recycling of goods and services). E ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Local Nonsatiation
In microeconomics, the property of local nonsatiation (LNS) of consumer preferences states that for any bundle of goods there is always another bundle of goods arbitrarily close that is strictly preferred to it.''Microeconomic Theory'', by A. Mas-Colell, et al. Formally, if X is the consumption set, then for any x \in X and every \varepsilon>0, there exists a y \in X such that \, y-x \, \leq \varepsilon and y is strictly preferred to x. Several things to note are: # Local nonsatiation is implied by monotonicity of preferences. However, as the converse is not true, local nonsatiation is a weaker condition. # There is no requirement that the preferred bundle ''y'' contain more of any good – hence, some goods can be "bads" and preferences can be non-monotone. # It rules out the extreme case where all goods are " bads", since the point ''x'' = 0 would then be a bliss point. # Local nonsatiation can only occur either if the consumption set is unbounded or open (in other wor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Leontief Utilities
In economics, especially in consumer theory, a Leontief utility function is a function of the form: u(x_1,\ldots,x_m)=\min\left\ . where: * m is the number of different goods in the economy. * x_i (for i\in 1,\dots,m) is the amount of good i in the bundle. * w_i (for i\in 1,\dots,m) is the weight of good i for the consumer. This form of utility function was first conceptualized by Wassily Leontief. Examples Leontief utility functions represent complementary goods. For example: * Suppose x_1 is the number of left shoes and x_2 the number of right shoes. A consumer can only use pairs of shoes. Hence, his utility is \min(x_1,x_2). * In a cloud computing environment, there is a large server that runs many different tasks. Suppose a certain type of a task requires 2 CPUs, 3 gigabytes of memory and 4 gigabytes of disk-space to complete. The utility of the user is equal to the number of completed tasks. Hence, it can be represented by: \min(, , ). Properties A consumer with a Leont ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Rate Of Substitution
In economics, the marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels (assuming no externalities), marginal rates of substitution are identical. The marginal rate of substitution is one of the three factors from marginal productivity, the others being marginal rates of transformation and marginal productivity of a factor. As the slope of indifference curve Under the standard assumption of neoclassical economics that goods and services are continuously divisible, the marginal rates of substitution will be the same regardless of the direction of exchange, and will correspond to the slope of an indifference curve (more precisely, to the slope multiplied by −1) passing through the consumption bundle in question, at that point: mathematically, it is the implicit derivative. MRS of X for Y is the amount of Y which a consumer c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monotonicity Criterion
Electoral system criteria In social choice, the negative response, perversity, or additional support paradox is a pathological behavior of some voting rules where a candidate loses as a result of having too much support (or wins because of increased opposition). In other words, increasing (decreasing) a candidate's ranking or rating causes that candidate to lose (win), respectively. Electoral systems that do not exhibit perversity are sometimes said to satisfy the monotonicity criterion.D R Woodall"Monotonicity and Single-Seat Election Rules" '' Voting matters'', Issue 6, 1996 Perversity is often described by social choice theorists as an exceptionally severe kind of electoral pathology, as such rules can have "backwards" responses to voters' opinions, where popularity causes defeat while unpopularity leads to a win. Similar rules treat the well-being of some voters as "less than worthless". These issues have led to constitutional prohibitions on such systems as violating ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Resource Monotonicity
Resource monotonicity (RM; aka aggregate monotonicity) is a principle of fair division. It says that, if there are more resources to share, then all agents should be weakly better off; no agent should lose from the increase in resources. The RM principle has been studied in various division problems. Allocating divisible resources Single homogeneous resource, general utilities Suppose society has m units of some homogeneous divisible resource, such as water or flour. The resource should be divided among n agents with different utilities. The utility of agent i is represented by a function u_i; when agent i receives y_i units of resource, he derives from it a utility of u_i(y_i). Society has to decide how to divide the resource among the agents, i.e, to find a vector y_1,\dots,y_n such that: y_1+\cdots+y_n = m. Two classic allocation rules are the egalitarian rule - aiming to equalize the utilities of all agents (equivalently: maximize the minimum utility), and the utilitari ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strict
In mathematical writing, the term strict refers to the property of excluding equality and equivalence and often occurs in the context of inequality and monotonic functions. It is often attached to a technical term to indicate that the exclusive meaning of the term is to be understood. The opposite is non-strict, which is often understood to be the case but can be put explicitly for clarity. In some contexts, the word "proper" can also be used as a mathematical synonym for "strict". Use This term is commonly used in the context of inequalities — the phrase "strictly less than" means "less than and not equal to" (likewise "strictly greater than" means "greater than and not equal to"). More generally, a strict partial order, strict total order, and strict weak order exclude equality and equivalence. When comparing numbers to zero, the phrases "strictly positive" and "strictly negative" mean "positive and not equal to zero" and "negative and not equal to zero", respectively ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Andreu Mas-Colell
Andreu Mas-Colell (; born 29 June 1944) is an economist, an expert in microeconomics and a prominent mathematical economist. He is the founder of the Barcelona School of Economics and a professor in the department of economics at Pompeu Fabra University in Barcelona, Catalonia, Spain. He has also served several times in the cabinet of the Catalan government.Curriculum vitae from Mas-Colell's web site at Pompeu Fabra, retrieved 2025-05-30.Faculty profile Barcelona School of Economics, retrieved 2025-05-30.. [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Michael Whinston
Michael D. Whinston is an American economist and currently the Sloan Fellows Professor at Massachusetts Institute of Technology. Previously he was the Robert E. and Emily H. King Professor at Northwestern University and is also a Fellow to the American Academy of Arts and Sciences and Econometric Society. Together with Andreu Mas-Colell and Jerry R. Green he authored the standard US graduate level microeconomics textbook: Mas-Colell, Michael D. Whinston and Jerry R. Green (1995) Microeconomic Theory, Oxford University Press Education Whinston received a bachelors of science in economics and an MBA in finance from Wharton at the University of Pennsylvania. He then went on to receive a PhD in economics from MIT. Personal life Whinston is married to political theorist and Brown University professor Bonnie Honig Bonnie Honig (born 1959) is a political, feminist, and legal theorist specializing in democratic theory. In 2013–14, she became Nancy Duke Lewis Professor-Elect of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jerry Green (economist)
Jerry Richard Green (born December 15, 1946) is the John Leverett Professor in the University and the David A. Wells Professor of Political Economy at Harvard University. He is known for his research in economic theory, as well as writing the most commonly used microeconomic theory for graduate school with Andreu Mas-Colell and Michael Whinston, ''Microeconomic Theory''. Biography Green received his bachelor's degree from the University of Rochester in 1967 and his Ph.D. in economics in 1970. He then joined Harvard's economics faculty. He was Harvard's Provost from 1992 to 1994 and chaired the economics department from 1984 to 1987. He is a recipient of the J. Kenneth Galbraith Prize for excellence in teaching. He is a Senior Fellow at the Harvard Society of Fellows and a fellow of the Econometric Society. He was elected fellow of the American Academy of Arts and Sciences The American Academy of Arts and Sciences (The Academy) is one of the oldest learned societies in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
