Elastic-demand utility with an interior reference

ID: elastic-demand-utility-with-an-interior-reference

An interior reference point defines the utility of a continuous strictly decreasing demand function without requiring integrability of its inverse at zero. The inverse demand is decreasing, so the utility is strictly concave. For example has inverse , whose integral from zero diverges. The interior-reference utility still has the required derivative and is finite at every interior demand.

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