= Elastic-demand utility with an interior reference
{title2=$G_s(f)=\int_{b_s}^{f}B_s^{-1}(u)\,du$}
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 $B(\lambda)=(1+\lambda)^{-1/2}$ has inverse $f^{-2}-1$, whose integral from zero diverges. The interior-reference utility still has the required derivative and is finite at every interior demand.
Back to article page
