Abstract
In this chapter we present the modern approach to the classical theory of consumer choice. The consumer’s objective is to select the (n + 1) bundle of goods and leisure that maximizes his well being. We let X = (X0, X1,… Xn) denote the vector of commodities. The element X0 shall be interpreted as leisure, and is contained on the interval [0, δ]. The scalar δ represents the individual’s total endowment of time. The Xk′s [k = 1, 2,… n] are interpreted as commodities, and are elements of R+. Thus the consumption set of the individual is taken to be \(\Omega \equiv \left\{ {X\varepsilon \left[ {0,\delta } \right]{\text{x R}}_ + ^{\text{n}} } \right\}\).
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© 1986 Springer-Verlag Berlin Heidelberg
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Baye, M.R., Black, D.A. (1986). Consumer Behavior in the Absence of an Income Tax. In: Consumer Behavior, Cost of Living Measures, and the Income Tax. Lecture Notes in Economics and Mathematical Systems, vol 276. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-46587-1_3
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DOI: https://doi.org/10.1007/978-3-642-46587-1_3
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-16797-6
Online ISBN: 978-3-642-46587-1
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