The Application of Lagrange Multipliers in Consumer Choice Theory

Result code in IS VaVaI

RIV/04274644:_____/22:#0000898 - isvavai.cz

Result on the web

https://www.vsfs.cz/periodika/acta-2022-1.pdf

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Application of Lagrange Multipliers in Consumer Choice Theory

Original language description

This article deals with the consumer choice theory developed by Irving Fisher, Francis Edgeworth, Vilfredo Pareto, and John Hicks. A three-dimensional utility function is presented as an alternative to indifference curves. In mainstream textbooks, the indifference curves together with the budget constraint are used to find the optimum of a consumer graphically at a point where the budget line is a tangent line to an indifference curve. In this article, a vertical cross-section of the three-dimensional utility function and the Lagrange multipliers are applied to find the optimum of a consumer directly from the three-dimensional utility function subject to the budget constraint.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

ACTA VŠFS

ISSN

1802-792X

e-ISSN

1802-7946

Volume of the periodical

16

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

13

Pages from-to

63-75

UT code for WoS article

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EID of the result in the Scopus database

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