A Reconsideration of the Theory of Value. Part II. A Mathematical Theory of Individual Demand Functions

Abstract

THE established definition of the way in which a pair of goods can be related in an individual's scale of preferences is due, in its precise form, to Edgeworth and Pareto. The definition assumes the existence of a utility function giving the utility to the individual of any combination of the set of consumers' goods, X,Y,Z ........ which enter into the individual's budget. Denoting the function by u=b(x,y,z . ...... ), the EdgeworthPareto definition of the relation between any pair of goods,