Dynamic Consumer Theory

This book is the first treatise on consumer theory in a dynamic framework.

Dynamic Consumer Theory

This book is the first treatise on consumer theory in a dynamic framework. It expands the conventional static consumer theory into a stochastic dynamic framework accommodating various combinations of uncertainties in future income, life-span and future preferences. These extensions incorporate realistic and intrinsic characteristics of the consumer decision into the analysis of consumer theory. Novel innovations to the field of consumer theory presented in the book include wealth-dependent ordinary demand, inter-temporal indirect utility function, wealth compensated demand, wealth expenditure function and inter-temporal Roys identity under uncertainty. A prominent highlight of the book is the derivation of a series of stochastic dynamic Slutsky equations. New optimal consumption paradigms presented include: (i) utility maximisation in a dynamic framework, duality and wealth compensated demand, and dynamic Slutsky equations, (ii) dynamic consumption under random horizon and income, (iii) consumption amid uncertainties in income, life span and preferences, and (iv) stochastic future prices and consumption decision. The mathematical foundation of the book provides a fertile ground for the analysis of dynamic consumption under stochastic dynamic environments. The book paves the way for a new phase in optimal consumption analysis and will be of interest to economics and mathematics students, economists, mathematicians and researchers in consumer behaviour.

Variable Quality in Consumer Theory Towards a Dynamic Microeconomic Theory of the Consumer

Examines consumer decision-making on products and services of variable quality at the level of retail markets.

Variable Quality in Consumer Theory  Towards a Dynamic Microeconomic Theory of the Consumer

Examines consumer decision-making on products and services of variable quality at the level of retail markets. Addresses for the first time consumer-producer interaction at the level of the individual consumer; issues of quality, consumption experience, and willingness-to-pay, as exhibited by individual consumers; and how these issues affect the decision-making process.

Structural Dynamics and Economic Growth

classical theories analytical simplification 233 four stages theory 41–3 price theory 166 Classical–Keynesian system ... 222 dynamic standard commodity 241, 242, 243, 252–3 and general price level 262 dynamic theory of consumption 182, ...

Structural Dynamics and Economic Growth

Ever since Adam Smith, economists have been preoccupied with the puzzle of economic growth. The standard mainstream models of economic growth were and often still are based either on assumptions of diminishing returns on capital with technological innovation or on endogenous dynamics combined with a corresponding technological and institutional setting. An alternative model of economic growth emerged from the Cambridge School of Keynesian economists in the 1950s and 1960s. This model - developed mainly by Luigi Pasinetti - emphasizes the importance of demand, human learning and the growth dynamics of industrial systems. Finally, in the past decade, new mainstream models have emerged incorporating technology or demand-based structural change and extending the notion of balanced growth. This collection of essays reassesses Pasinetti's theory of structural dynamics in the context of these recent developments, with contributions from economists writing in both the mainstream and the Cambridge Keynesian traditions and including Luigi Pasinetti, William Baumol, Geoffrey Harcourt and Nobel laureate Robert Solow.

Dynamic Disequilibrium Modeling Theory and Applications

Milano : Giuf- fré , pp . 703-68 . Barnett , W. ( 1990 ) , " Developments in Monetary Aggregation Theory , " Journal of Policy Modelling 12 : 205-57 . Barnett , W. , D. Fisher , and A. Serletis ( 1992 ) , “ Consumer Theory and the De- ...

Dynamic Disequilibrium Modeling  Theory and Applications

. The organizers of the ninth symposium, which produced the current proceedings volume, were Claude Hillinger at the University of Munich, Giancarlo Gandolfo at the University of Rome "La Sapienza," A. R. Bergstrom at the University of Essex, and P. C. B. Phillips at Yale University.

Foundations of Dynamic Economic Analysis

Cooper and McLaren (1993) survey the different approaches one may take in solving and characterizing the solution ofan intertemporal model of theconsumer. Lasserre and Ouellette(1999) presenta rathergeneral duality theory foran expected ...

Foundations of Dynamic Economic Analysis

Foundations of Dynamic Economic Analysis presents a modern and thorough exposition of the fundamental mathematical formalism used to study optimal control theory, i.e., continuous time dynamic economic processes, and to interpret dynamic economic behavior. The style of presentation, with its continual emphasis on the economic interpretation of mathematics and models, distinguishes it from several other excellent texts on the subject. This approach is aided dramatically by introducing the dynamic envelope theorem and the method of comparative dynamics early in the exposition. Accordingly, motivated and economically revealing proofs of the transversality conditions come about by use of the dynamic envelope theorem. Furthermore, such sequencing of the material naturally leads to the development of the primal-dual method of comparative dynamics and dynamic duality theory, two modern approaches used to tease out the empirical content of optimal control models. The stylistic approach ultimately draws attention to the empirical richness of optimal control theory, a feature missing in virtually all other textbooks of this type.

Mechanisms and Games for Dynamic Spectrum Allocation

... mean-field game Discussions Conclusions Open issues Acknowledgements References Walrasian model for resource allocation and transceiver design in interference networks Eduard A. Jorswieck and Rami Mochaourab 4.1 Consumer theory 50 ...

Mechanisms and Games for Dynamic Spectrum Allocation

An innovative and comprehensive book presenting state-of-the-art research into wireless spectrum allocation based on game theory and mechanism design.

Behavioral Interactions Markets and Economic Dynamics

University of Michigan Hayakawa H (1976) Consumer theory when prices and real income affect preferences. South Econ J42(1):840–845 Hayakawa H ... Am Econ Rev 73(4):560–595 Heiner RA (1989) The origin of predictable dynamic behavior.

Behavioral Interactions  Markets  and Economic Dynamics

This book collects important contributions in behavioral economics and related topics, mainly by Japanese researchers, to provide new perspectives for the future development of economics and behavioral economics. The volume focuses especially on economic studies that examine interactions of multiple agents and/or market phenomena by using behavioral economics models. Reflecting the diverse fields of the editors, the book captures broad influences of behavioral economics on various topics in economics. Those subjects include parental altruism, economic growth and development, the relative and permanent income hypotheses, wealth distribution, asset price bubbles, auctions, search, contracts, personnel management and market efficiency and anomalies in financial markets. The chapter authors have added newly written addenda to the original articles in which they address their own subsequent works, supplementary analyses, detailed information on the underlying data and/or recent literature surveys. This will help readers to further understand recent developments in behavioral economics and related research.

Uncertain Decisions

Finally, it implicitly assumes that the consumer is rational enough to find a utility-maximizing bundle subject to the budget constraint. The theory of repeated choice described in Section 6 is dynamic in nature, and it thus holds a ...

Uncertain Decisions

Uncertain Decisions: Bridging Theory and Experiments presents advanced directions of thinking on decision theory - in particular the more recent contributions on non-expected utility theory, fuzzy decision theory and case-based theory. This work also provides theoretical insights on measures of risk aversion and on new problems for general equilibrium analysis. It analyzes how the thinking that underlies the theories described above spills over into real decisions, and how the thinking that underlies these real decisions can explain the discrepancies between theoretical approaches and actual behavior. This work elaborates on how the most recent laboratory experiments have become an important source both for evaluating the leading theory of choice and decision, and for contributing to the formation of new models regarding the subject.

Dynamic Optimization in Environmental Economics

A representative consumer theory of distribution. The American Economic Review, 90(4), 909–926. Cooley, T. F., & Soares, J. (1999). A positive theory of social security based on reputation. Journal of Political Economy, 107, 135–160.

Dynamic Optimization in Environmental Economics

The book presents new developments in the dynamic modeling and optimization methods in environmental economics and provides a huge range of applications dealing with the economics of natural resources, the impacts of climate change and of environmental pollution, and respective policy measures. The interrelationship between economic activities and environmental quality, the development of cleaner technologies, the switch from fossil to renewable resources and the proper use of policy instruments play an important role along the path towards a sustainable future. Biological, physical and economic processes are naturally involved in the subject, and postulate the main modelling, simulation and decision-making tools: the methods of dynamic optimization and dynamic games.

The Dynamic Systems of Basic Economic Growth Models

Thereafter came the comparative statics of producer and consumer theory in the 1920s-1940s. Thus, apart from some business cycle theories, it is argued that as statics and comparative statics progressed, dynamics was somewhat neglected ...

The Dynamic Systems of Basic Economic Growth Models

Two central problems in the pure theory of economic growth are analysed in this monograph: 1) the dynamic laws governing the economic growth processes, 2) the kinematic and geometric properties of the set of solutions to the dynamic systems. With allegiance to rigor and the emphasis on the theoretical fundamentals of prototype mathematical growth models, the treatise is written in the theorem-proof style. To keep the exposition orderly and as smooth as possible, the economic analysis has been separated from the purely mathematical issues, and hence the monograph is organized in two books. Regarding the scope and content of the two books, an "Introduction and Over view" has been prepared to offer both motivation and a brief account. The introduc tion is especially designed to give a recapitulation of the mathematical theory and results presented in Book II, which are used as the unifying mathematical framework in the analysis and exposition of the different economic growth models in Book I. Economists would probably prefer to go directly to Book I and proceed by consult ing the mathematical theorems of Book II in confirming the economic theorems in Book I. Thereby, both the independence and interdependence of the economic and mathematical argumentations are respected.

Asset Pricing for Dynamic Economies

“ANew Approach to Consumer Theory.” Journalof Political Economy47,132–157. [304] Leland,H. (1968).“Saving andUncertainty: The Precautionary Demand for Saving.” Quarterly Journal of Economics 82,465–473. [305] LeRoy, S.and R. Porter ...

Asset Pricing for Dynamic Economies

This introduction to general equilibrium modelling takes an integrated approach to the analysis of macroeconomics and finance. It provides students, practitioners, and policymakers with an easily accessible set of tools that can be used to analyze a wide range of economic phenomena. Key features: • Provides a consistent framework for understanding dynamic economic models • Introduces key concepts in finance in a discrete time setting • Develops simple recursive approach for analyzing a variety of problems in a dynamic, stochastic environment • Sequentially builds up the analysis of consumption, production, and investment models to study their implications for allocations and asset prices • Reviews business cycle analysis and the business cycle implications of monetary and international models • Covers latest research on asset pricing in overlapping generations models and on models with borrowing constraints and transaction costs • Includes end-of-chapter exercises allowing readers to monitor their understanding of each topic Online resources are available at www.cambridge.org/altug_labadie

Dynamic Consumer Analysis

In fact , because the dynamic consumer model predicts well under changing marketing and operating conditions , we gain ... We based our selection of construct operationalization on consumer theory and previous empirical research and we ...

Dynamic Consumer Analysis


Game Theoretic Analysis

He is also the author of the first book on dynamic consumer theory. Leon Petrosyan obtained his MSc, PhD and DSc (Doktor Nauk) in Mathematics from Saint Petersburg State University. He is currently University Professor, Professor of ...

Game Theoretic Analysis

This is a collection of recent novel contributions in game theory from a group of prominent authors in the field. It covers Non-cooperative Games, Equilibrium Analysis, Cooperative Games and Axiomatic Values in static and dynamic contexts.Part 1: Non-cooperative Games and Equilibrium AnalysisIn game theory, a non-cooperative game is a game with competition between individual players and in which only self-enforcing (e.g. through credible threats) alliances (or competition between groups of players, called 'coalitions') are possible due to the absence of external means to enforce cooperative behavior (e.g. contract law), as opposed to cooperative games. In fact, non-cooperative games are the foundation for the development of cooperative games by acting as the status quo. Non-cooperative games are generally analysed through the framework of equilibrium, which tries to predict players' individual strategies and payoffs. Indeed, equilibrium analysis is the centre of non-cooperative games. This volume on non-cooperative games and equilibrium analysis contains a variety of non-cooperative games and non-cooperative game equilibria from prominent authors in the field.Part 2: Cooperative Games and Axiomatic ValuesIt is well known that non-cooperative behaviours, in general, would not lead to a Pareto optimal outcome. Highly undesirable outcomes (like the prisoner's dilemma) and even devastating results (like the tragedy of the commons) could appear when the involved parties only care about their individual interests in a non-cooperative situation. Cooperative games offer the possibility of obtaining socially optimal and group efficient solutions to decision problems involving strategic actions. In addition, axiomatic values serve as guidance for establishing cooperative solutions. This volume on cooperative games and axiomatic values presents a collection of cooperative games and axiomatic values from prominent authors in the field.

Discrete Time Dynamic Economic Models

Theory and Empirical Applications Brian Ferguson, Guay Lim ... testingthehypothesis that the homogeneity and symmetryproperties which consumer theory predicts for demand systems holdonlyin the long run and not the short run.

Discrete Time Dynamic Economic Models

This new book will be welcomed by econometricians and students of econometrics everywhere. Introducing discrete time modelling techniques and bridging the gap between economics and econometric literature, this ambitious book is sure to be an invaluable resource for all those to whom the terms unit roots, cointegration and error correction forms, chaos theory and random walks are recognisable if not yet fully understood.

Dynamic Policy Games in Economics

References Başar, T. and G. J. Olsder, Dynamic Noncooperative Game Theory, Academic Press, New York, 1982. Boulding, K.E., Conflict and Defence, Harper and Row, Boston, 1961. ... Lancaster, K., 'A new approach to consumer theory ...

Dynamic Policy Games in Economics

The aim of this volume is to consider intertemporal and strategic issues in the formulation of economic policy so that dynamic game methodology is appropriate. When changes in economic policy are evaluated the reactions and expectations of other economic agents cannot be ignored, and in a dynamic setting issues like time inconsistency, subgame perfectness, reputation and information become important. The papers contained in this volume are the revised versions of those presented at a conference held in 1988 at Tilburg University, The Netherlands. They include methodological contributions and strategic analyses of macroeconomic policy, resource economics, international policy coordination and the arms race.

Long run Growth Social Institutions and Living Standards

The second foundation of the dynamic theory of consumption contained in structural dynamics is consumer learning. The process of learning is prior and more fundamental to consumer choice than the notion of rational behaviour, ...

Long run Growth  Social Institutions and Living Standards

This engaging book contains a set of original contributions to the much-debated issues of long-run economic growth in relation to institutional and social progress. It explores the mutual relationships between living standards, social habits, education an

Microeconomics

This book provides a comprehensive overview of the fundamental concepts and principles of microeconomics.

Microeconomics

This book provides a comprehensive overview of the fundamental concepts and principles of microeconomics. It introduces students to the models, assumptions, and empirical applications of modern microeconomics, as well as to the necessary mathematical tools. It covers topics such as economic behavior, consumer theory, theory of the firm, partial and general equilibrium theory, industrial organization, bargaining theory, and Pareto optimality. Students learn not only about economic outcomes at a given point of equilibrium, but also about dynamic economics, which includes both equilibrium and disequilibrium. This book is intended for undergraduate and graduate students in economics and related fields who are interested in the basic theories and applications of microeconomics.

A Theory of Interregional Dynamics

Umeå: CERUM at University of Umeå Kaldor, N. (1966): Marginal Productivity and the Macro-Economic Theories of Distribution. ... London: Yale University Press Lancaster, K. (1966): A New Approach to Consumer Theory.

A Theory of Interregional Dynamics

Over more than two centuries the development of economic theory has created a wide array of different theories, concepts and results. Nevertheless, there is no general theory, which mrifies these varied theories into a comprehensive one. Economics has been split between partial and conflicting representations of the functioning of market economies. We have a collection of separate theories such as the Marxian economics, the Keynesian economics, the general equilibrium theory, and the neoclassical growth theory. These diverse economic theories have co-existed but not in a structured relationship with each other. Economic students are trained to understand economic phenomena by severally incompatible theories one by one in the same course. Since the end of Second Wodd War many crises in economic theory have been announced. The economist experienced the crisis of the general equilibrium economics, the crisis of the neoclassical growth economics, the crisis of the Keynesian economics, not to mention the crises of the Marxian economics. It is quite reasonable to expect the loss of confidence in theoretical economics even among professional economists after so many crises in a very short period of time. But a crisis offers new opportmrities for change, either for better or for worse. The past crises in theoretical economics may be perceived as a historical opportmrity to construct a general economic theory by which the traditional theories are integrated into a higher whole.

Structural Economic Dynamics

... 41 , 107 must increase , with technical progress , 46 , 53 consumer demand theory , 37 , 107-9 inadequate for dynamic analysis , 37 , 107 hints at a demand theory in a dynamic setting , 39-40 , 107–8 consumption as a basic activity ...

Structural Economic Dynamics

This book is a theoretical investigation of the influence of human learning on the development through time of a 'pure labour' economy. The theory proposed is a simple one, but aims to grasp the essential features of all industrial economies. Economists have long known that two basic phenomena lie at the root of long-term economic movements in industrial societies: capital accumulation and technical progress. Attention has been concentrated on the former. In this book, by contrast, technical progress is assigned the central role. Within a multi-sector framework, the author examines the structural dynamics of prices, production and employment (implied by differentiated rates of productivity growth and expansion of demand) against a background of 'natural' relations. He also considers a number of institutional problems. Institutional and social learning, know-how, and the diffusion of knowledge emerge as the decisive factors accounting for the success and failure of industrial societies.