Benefit function and individual preferences.: A generalization of the Zero-Maximum principle.

• Autores: Juan Aparicio Baeza, Jesús T. Pastor Ciurana
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 1, Nº. 1, 2012, págs. 12-20
• Idioma: inglés
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• Resumen

  • In this paper we show that given a utility threshold Luenberger�s benefit function correctly represents individual preferences as long as specific reference commodity bundles are considered. We further show a condition which is sufficient for reaching Pareto optimality that generalizes the zero-maximum principle proposed by Luenberger.

    Under our hypothesis, the social benefit could be positive, negative or zero, and not necessarily always zero.