Download This PaperPsychophysical Foundations of the Cobb-Douglas Utility Function
8 Pages Posted: 15 May 2018
Date Written: March 1, 2017
Abstract
Relying on a literal interpretation of Weber's law in psychophysics, we show that a simple condition of independence across good categories implies the Cobb-Douglas preferences.
Keywords: Cobb-Douglas, Weber's Law, Semi-Order
JEL Classification: D11
Suggested Citation: Suggested Citation
Argenziano, Rossella and Gilboa, Itzhak, Psychophysical Foundations of the Cobb-Douglas Utility Function (March 1, 2017). HEC Paris Research Paper No. ECO/SCD-2018-1269, Available at SSRN: https://ssrn.com/abstract=3178753 or http://dx.doi.org/10.2139/ssrn.3178753
HEC Paris - Economics & Decision Sciences
Paris
France
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