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Topic: Tests for quasiconcavity
Conf: Chapter 1, Consumer Theory, Msg: 532
From: Andrew Lemon (anlemon@yahoo.com)
Date: 9/19/2000 05:34 PM

Tests for quasiconcavity Andrew Lemon Andrew Lemon anlemon@yahoo.com Another approach to determine the quasiconcavity of the CES utility function is to examine its marginal rate of substitution (MRS). If the MRS exhibits diminishing returns, then the preference relation is convex so that the upper contour set is convex. This in turn implies that the utility function is quasiconcave.

It has been pointed out to me, however, that this only holds for the two-good case.