Ordients: Optimization and comparative statics without utility functions
- Author(s)
- Renou Ludovic, Karl Schlag
- Abstract
This paper introduces the concept of ordient for binary relations (preferences), a relative of the concept of gradient for functions (utilities). Ordients have a natural economic interpretation as marginal rates of substitution. Some examples of ordientable binary relations include the lexicographic order, binary relations resulting from the sequential applications of multiple rationales or binary relations with differentiable representations. We characterize the constrained maxima of binary relations through ordients and provide an implicit function theorem and an envelope theorem.
- Organisation(s)
- Department of Economics
- External organisation(s)
- University of Essex
- Journal
- Journal of Economic Theory
- Volume
- 154
- Pages
- 612 - 632
- No. of pages
- 21
- ISSN
- 0022-0531
- DOI
- https://doi.org/10.1016/j.jet.2014.09.013
- Publication date
- 11-2014
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502047 Economic theory
- Keywords
- ASJC Scopus subject areas
- Economics and Econometrics
- Portal url
- https://ucris.univie.ac.at/portal/en/publications/ordients-optimization-and-comparative-statics-without-utility-functions(801e1db9-f8bf-41ef-9f5a-65ca9d6ad8dc).html