The Generalized Fechner-Thurstone Direct Utility Function and Some of Its Uses

Basmann, R. L./ Slottje, Daniel J./ Hayes, K./ Johnson, J. D./ Molina, David J.

ISBN 10: 0387968539 / ISBN 13: 9780387968537

Published by Springer Verlag, 1988

About this Item

167 pages. 8.19x5.67x0.39 inches. In Stock.

Seller Inventory # x-0387968539

Bibliographic Details

• Title: The Generalized Fechner-Thurstone Direct Utility Function and Some of Its Uses
• Publisher: Springer Verlag
• Publication Date: 1988
• Language: English
• ISBN 10: 0387968539
• ISBN 13: 9780387968537
• Binding: Paperback
• Condition: Brand New
• Weight: 0.3 kilograms

About this title

Synopsis

In this book the foundations and applicability of the Generalized Fechner-Thurstone Utility Function are laid out. It is shown how by removing the constraint of fixed preferences in the neoclassical consumer theory, utility theory can be used to develop non-parametric indices along with elasticities of the marginal rates of substitutions. It is also shown that whereas the existence of a fixed preference utility function is not always guaranteed for different demand functions, there will always exist at least one Generalized Fechner-Thurstone Direct Utility Function. Furthermore, analysis using the Fechner-Thurstone Direct Utility Function is clear and simple and does not rely on ad hoc Taylor expansions. The construction of different true-cost-of-living indices, the comparison of North American consumers, and a habit formation model are developed to show the usefulness of the Generalized Fechner-Thurstone Direct Utility Function.