On a Class of Smooth Preferences

Résumé

We construct a complete space of smooth strictly convex preferences defined over commodities and monetary transfers. Our model extends the classical one in that preferences are strictly monotone in monetary transfers, but need not be monotone in all commodities. We thereby provide a natural framework for performing genericity analyses in situations involving inventory costs or decisions under risk. The constructed space of preferences is contractible, which allows for a natural aggregation procedure in collective decision situations.

Mots-clés

Codes JEL

Remplace

Andrea Attar, Thomas Mariotti et François Salanié, « On a Class of Smooth Preferences », TSE Working Paper, n° 17-799, avril 2017, révision octobre 2017.

Référence

Andrea Attar, Thomas Mariotti et François Salanié, « On a Class of Smooth Preferences », Economic Theory Bulletin, vol. 7, n° 1, mai 2019, p. 37–57.