Logarithmically homogeneous preferences

Research output: Contribution to journalArticle

Abstract

An extended-real-valued function on R+n is called logarithmically homogeneous if it is given by the logarithmic transformation of a homogeneous function on R+n. Specifying a consumer's preference on the consumption set by a difference comparison relation, this paper provides some axioms on the relation under which the full class of utility functions representing the relation are logarithmically homogeneous. It is also shown that all the utility functions are strongly concave and all the indirect utility functions are logarithmically homogeneous. Moreover, the additively separable logarithmic utility functions are derived by strengthening one of the axioms.

Original languageEnglish
Pages (from-to)1-9
Number of pages9
JournalJournal of Mathematical Economics
Volume67
DOIs
Publication statusPublished - 2016 Dec 1

Keywords

  • Additively separable logarithmic utility function
  • Difference comparison
  • Intensity comparison
  • Logarithmically homogeneous utility function
  • Stone's price index

ASJC Scopus subject areas

  • Economics and Econometrics
  • Applied Mathematics

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