On a Class of Smooth Preferences

Abstract

We construct a complete space of smooth strictly convex preference relations defined over physical commodities and monetary transfers. This construction extends the classic one by assuming that preferences are monotone in transfers, but not necessarily in all commodities. This provides a natural framework to perform genericity analyses in situations involving inventory costs or decisions under risk.

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Replaced by

Andrea Attar, Thomas Mariotti, and François Salanié, “On a Class of Smooth Preferences”, Economic Theory Bulletin, vol. 7, n. 1, May 2019, pp. 37–57.

Reference

Andrea Attar, Thomas Mariotti, and François Salanié, “On a Class of Smooth Preferences”, TSE Working Paper, n. 17-799, April 2017, revised October 2017.