ON A MORE GENERAL RATIONALE FOR CIRCULAR INDIFFERENCE CURVES
VINCY FON
(Assistant Professor, The George Washington University, Washington, D.C.)
BRYAN L. BOULIER
(Associate Professor, The George Washington University, Washington, D.C.)
ROBERT S. GOLDFARB
(Professor of Economics, The George Washington University, Washington, D.C.)
301
Abstract
Many texts display circular indifference curves. The rationale for such curves typically requires that goods become bads — that is, their marginal utilities become negative — over some range (e.g., Baumol [1], p. 199). In this note we develop what seems to be a far more general and intuitively appealing rationale for “approximately circular” indifference curves. This rationale suggests that the phenomenon may be far more widespread than previous analysis implies.
Citation
FON, V., BOULIER, B.L. and GOLDFARB, R.S. (1985), "ON A MORE GENERAL RATIONALE FOR CIRCULAR INDIFFERENCE CURVES", Studies in Economics and Finance, Vol. 9 No. 2, pp. 29-36. https://doi.org/10.1108/eb028656
Publisher
:MCB UP Ltd
Copyright © 1985, MCB UP Limited