Psychophysical Foundations of the Cobb-Douglas Utility Function

8 Pages Posted: 15 May 2018

See all articles by Rossella Argenziano

Rossella Argenziano

University of Essex - Department of Economics

Itzhak Gilboa

Tel Aviv University - Eitan Berglas School of Economics; HEC Paris - Economics & Decision Sciences

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

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

Rossella Argenziano (Contact Author)

University of Essex - Department of Economics ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Itzhak Gilboa

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
972-3-640-6423 (Phone)
972-3-640-9908 (Fax)

HEC Paris - Economics & Decision Sciences

Paris
France

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