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Non Utility Maximizing Behaviour: Probabilistic Choice in a Budget Set “Box”. Properties of Expected Demand Functions

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  • Larsson, Lars-Göran

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In this paper we use some(even a convex) probabilistic frequency functions in two choice variables defined over the budget set” box” and calculate the expected demand to study its properties The expected demands have own price negativity , are normal goods and are homogeneous of degree zero*. The detailed properties of deterministic demand functions can be replaced with similar properties for some expected demand functions the latter found with fewer and behaviourally less restrictive assumptions. To assume a deterministic utility function to be maximized is more restrictive in a behavioural sense than assuming random choice between some boundaries.

Suggested Citation

  • Larsson, Lars-Göran, 2008. "Non Utility Maximizing Behaviour: Probabilistic Choice in a Budget Set “Box”. Properties of Expected Demand Functions," Working Papers in Economics 293, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0293
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    File URL: http://hdl.handle.net/2077/9854
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Non-maximising behaviour; Bounded rationality; Random choice; Expected demand;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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