Psychophysical Foundations of the Cobb-Douglas Utility Function

Rossella Argenziano (1) , Itzhak Gilboa (2)

1 Department of Economics
2 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC

Relying on a literal interpretation of Weber's law in psychophysics, we show that a simple condition of independence across good categories implies the Cobb-Douglas preferences.

Keywords: Cobb-Douglas; Weber's Law; Semi-Order

Domains: Humanities and Social Sciences; Business administration

Rossella Argenziano, Itzhak Gilboa. Psychophysical Foundations of the Cobb-Douglas Utility Function. 2018. ⟨hal-01933881⟩