The Application of Lagrange Multipliers in Consumer Choice Theory

@article{10100,
   author = {Mach, Petr},
   article_location = {Praha},
   article_number = {1},
   keywords = {consumer choice; consumer optimum; indifference curves; three-dimensional utility function},
   language = {eng},
   issn = {1802-792X},
   journal = {ACTA VŠFS},
   title = {The Application of Lagrange Multipliers in Consumer Choice Theory},
   url = {https://www.vsfs.cz/periodika/acta-2022-1.pdf},
   volume = {16},
   year = {2022}
}

TY  - JOUR
ID  - 10100
AU  - Mach, Petr
PY  - 2022
TI  - The Application of Lagrange Multipliers in Consumer Choice Theory
JF  - ACTA VŠFS
VL  - 16
IS  - 1
SP  - 63-75
EP  - 63-75
PB  - VSFS
SN  - 1802792X
KW  - consumer choice
KW  - consumer optimum
KW  - indifference curves
KW  - three-dimensional utility function
UR  - https://www.vsfs.cz/periodika/acta-2022-1.pdf
N2  - This article deals with the consumer choice theory developed by Irving Fisher, Francis Edgeworth, Vilfredo Pareto, and John Hicks. A three-dimensional utility function is presented as an alternative to indifference curves. In mainstream textbooks, the indifference curves together with the budget constraint are used to find the optimum of a consumer graphically at a point where the budget line is a tangent line to an indifference curve. In this article, a vertical cross-section of the three-dimensional utility function and the Lagrange multipliers are applied to find the optimum of a consumer directly from the three-dimensional utility function subject to the budget constraint.
ER  - 

MACH, Petr. The Application of Lagrange Multipliers in Consumer Choice Theory. \textit{ACTA VŠFS}. Praha: VSFS, 2022, roč.~16, č.~1, s.~63-75. ISSN~1802-792X.