Utility maximization problem: Difference between revisions

Revision as of 18:32, 9 April 2009

Revision as of 19:05, 9 April 2009

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In practice, a consumer may not always pick an optimal package. For example, it may require too much thought. [[Bounded rationality]] is a theory that explains this behaviour with [[satisficing]] - picking packages that are suboptimal but good enough.

=== non unique solution ===

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The solution ''x''(''p'', ''w'') need not be unique. If a consumer always picks an optimal package as defined above, then ''x''(''p'', ''w'') is called the [[Marshallian demand correspondence]].

==See also==