Differentiability Properties of a Parametric Consumer Problem

MaRDI QIDQ5142523zbMATH OpenFDO

Authors Vu Thi Huong, Jen-Chih Yao, Nguyen Dong Yen

Publication date 31 December 2020

Full work available at URL https://arxiv.org/abs/1804.10377, http://yokohamapublishers.jp/online2/opjnca/vol19/p1217.html

zbMATH Keywords

Banach space settingbudget mapindirect utility functionparametric consumer problemsubdifferential

Mathematics Subject Classification ID

Utility theory (91B16) Consumer behavior, demand theory (91B42)

Abstract: We study the budget map and the indirect utility function of a parametric consumer problem in a Banach space setting by some advanced tools from set-valued and variational analysis. The Lipschitz-likeness and differentiability properties of the budget map, as well as formulas for finding subdifferentials of the infimal nuisance function, which is obtained from the indirect utility function by changing its sign, are established. Our investigation is mainly based on the paper by Mordukhovich [J. Global Optim. 28 (2004), 347--362] on coderivative analysis of variational systems and the paper of Mordukhovich, Nam, and Yen [Math. Program. 116 (2009), 369--396] on subgradients of marginal functions. Economic meanings of the obtained subdifferential estimates are explained in details.

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Cited in

(6)

• On the stability and solution sensitivity of a consumer problem
• On the differentiability of the consumer demand function
• Stability of efficient solutions to set optimization problems
• Variational analysis for the consumer theory
• Subdifferentials of optimal value functions under metric qualification conditions
• Analysis of subdifferentials of marginal and performance functions

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