Information geometries and Microeconomic Theories Export

@article{citeulike:3925720, abstract = {More than thirty years ago, Charnes, Cooper and Schinnar (1976) established an enlightening contact between economic production functions (EPFs) -- a cornerstone of neoclassical economics -- and information theory, showing how a generalization of the Cobb-Douglas production function encodes homogeneous functions. As expected by Charnes \textit{et al.}, the contact turns out to be much broader: we show how information geometry as pioneered by Amari and others underpins static and dynamic descriptions of microeconomic cornerstones. We show that the most popular EPFs are fundamentally grounded in a very weak axiomatization of economic transition costs between inputs. The strength of this characterization is surprising, as it geometrically bonds altogether a wealth of collateral economic notions -- advocating for applications in various economic fields --: among all, it characterizes (i) Marshallian and Hicksian demands and their geometric duality, (ii) Slutsky-type properties for the transformation paths, (iii) Roy-type properties for their elementary variations.}, archivePrefix = {arXiv}, author = {Nock, Richard and Magdalou, Brice and Sanz, Nicolas and Briys, Eric and Celimene, Fred and Nielsen, Frank}, citeulike-article-id = {3925720}, citeulike-linkout-0 = {http://arxiv.org/abs/0901.2586}, citeulike-linkout-1 = {http://arxiv.org/pdf/0901.2586}, day = {16}, eprint = {0901.2586}, keywords = {bregman\_divergence, economics, information\_geometry}, month = {Jan}, posted-at = {2009-01-22 19:50:45}, priority = {2}, title = {Information geometries and Microeconomic Theories}, url = {http://arxiv.org/abs/0901.2586}, year = {2009} }

TY - JOUR ID - citeulike:3925720 L3 - citeulike-article-id:3925720 N2 - More than thirty years ago, Charnes, Cooper and Schinnar (1976) established an enlightening contact between economic production functions (EPFs) -- a cornerstone of neoclassical economics -- and information theory, showing how a generalization of the Cobb-Douglas production function encodes homogeneous functions. As expected by Charnes \textit{et al.}, the contact turns out to be much broader: we show how information geometry as pioneered by Amari and others underpins static and dynamic descriptions of microeconomic cornerstones. We show that the most popular EPFs are fundamentally grounded in a very weak axiomatization of economic transition costs between inputs. The strength of this characterization is surprising, as it geometrically bonds altogether a wealth of collateral economic notions -- advocating for applications in various economic fields --: among all, it characterizes (i) Marshallian and Hicksian demands and their geometric duality, (ii) Slutsky-type properties for the transformation paths, (iii) Roy-type properties for their elementary variations. TI - Information geometries and Microeconomic Theories KW - bregman_divergence KW - economics KW - information_geometry AU - Nock, Richard AU - Magdalou, Brice AU - Sanz, Nicolas AU - Briys, Eric AU - Celimene, Fred AU - Nielsen, Frank PY - 2009/Jan/16/ UR - http://arxiv.org/abs/0901.2586 ER -