Abstract ▼ AI-Helper

This paper proposes a tractable alternative to Cobb‐Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb‐Douglas utility or quasilinear utility. Another advantage of this althernative is that it provides a closed&...

This paper proposes a tractable alternative to Cobb‐Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb‐Douglas utility or quasilinear utility. Another advantage of this althernative is that it provides a closed‐form general equilibrium in the case where some industries are monopoly while others are imperfectly competitive.