Psychophysical Foundations of the Cobb-Douglas Utility Function
8 Pages Posted: 15 May 2018
Date Written: March 1, 2017
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