
doi: 10.2307/2526537
The paper considers a function \(M_ p(x)\) that specifies the minimum income needed at prices p to obtain a consumption vector preferred to x. This function is called a money metric. Sufficient conditions on the consumption set, on the preference relation, and on the prices are given ensuring that the money metric is a well-defined and continuous utility function on a subset of the consumption set. Applications to discrete- choice problems are mentioned. The paper also discusses an extension of the money metric to the entire consumption set, and conditions under which the dual of a money metric is an indirect utility function.
money metric, continuous utility function, discrete-choice problems, Utility theory
money metric, continuous utility function, discrete-choice problems, Utility theory
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