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Transferable Utility in the Case of Many Private and Many Public Goods

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  • Elisabeth Gugl

Abstract

It is possible to have income effects on more than one good in utility profiles that lead to Transferable Utility (TU) and in the presence of many private and many public goods. Assuming that the utility functions are of the Generalized Quasi-linear (GQL) form is not necessary for TU to hold. I present a much broader class of utility profiles generating TU in which GQL emerges as a special case.

Suggested Citation

  • Elisabeth Gugl, 2014. "Transferable Utility in the Case of Many Private and Many Public Goods," Studies in Microeconomics, , vol. 2(2), pages 133-140, December.
    • Handle: RePEc:sae:miceco:v:2:y:2014:i:2:p:133-140
    DOI: 10.1177/2321022214545271
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    References listed on IDEAS

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    1. Bergstrom, Theodore C & Cornes, Richard C, 1983. "Independence of Allocative Efficiency from Distribution in the Theory of Public Goods," Econometrica, Econometric Society, vol. 51(6), pages 1753-1765, November.
    2. Bergstrom, Theodore C. & Varian, Hal R., 1985. "When do market games have transferable utility?," Journal of Economic Theory, Elsevier, vol. 35(2), pages 222-233, August.
    3. Chiappori, Pierre-Andre, 2010. "Testable implications of transferable utility," Journal of Economic Theory, Elsevier, vol. 145(3), pages 1302-1317, May.
    4. Bergstrom, Theodore C, 1989. "A Fresh Look at the Rotten Kid Theorem--and Other Household Mysteries," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1138-1159, October.
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    Cited by:

    1. Chiappori, Pierre-André & Gugl, Elisabeth, 2020. "Transferable utility and demand functions," Theoretical Economics, Econometric Society, vol. 15(4), November.
    2. Bergstrom, Ted, 2017. "When was Coase right?," University of California at Santa Barbara, Economics Working Paper Series qt6136k9kh, Department of Economics, UC Santa Barbara.

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