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Linear demand functions in theory and practice. (English) Zbl 0573.90018
Integrability conditions for an incomplete system of linear demand functions are considered. The parameter restrictions consistent with integrability are identified, and the structure of the conditional preference map is obtained. It is found that the conditional preferences for a set of linear demand functions are either quadratic or Leontief from a translated origin. Welfare analysis with linear demand models is also considered.
MSC:
91B60Trade models in economics
62P20Applications of statistics to economics