Tiffanys constant elasticity of substitution (CES) utility function is U(q 1 , q 2 )
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Tiffany’s constant elasticity of substitution (CES) utility function is U(qρ1, qρ2) = (qr1 + qρ2)1/ρ. Show that there is a positive monotonic transformation such that there is an equivalent utility function (one with the same preference ordering) U(q1, q2) = qρ1 + qρ2?
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Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
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