Hicksian demand
E204381
Hicksian demand is a concept in microeconomics that describes how a consumer’s demand for goods changes when prices vary while holding utility (satisfaction) constant, often used in welfare and consumer theory.
All labels observed (2)
| Label | Occurrences |
|---|---|
| Hicksian demand canonical | 1 |
| Marshallian demand holds income constant instead of utility | 1 |
Statements (44)
| Predicate | Object |
|---|---|
| instanceOf |
demand function
ⓘ
economic concept ⓘ |
| allowsToVary | income ⓘ |
| alsoKnownAs |
compensated demand
ⓘ
constant-utility demand ⓘ |
| appliesTo | individual consumer behavior ⓘ |
| assumes |
local non-satiation of preferences
ⓘ
stable and complete preferences ⓘ |
| canBeAggregatedTo | market Hicksian demand under certain conditions ⓘ |
| codomain | consumption bundles ⓘ |
| contrastedWith | Marshallian (uncompensated) demand ⓘ |
| contrastPropertyWith |
Hicksian demand
self-linksurface differs
ⓘ
surface form:
Marshallian demand holds income constant instead of utility
|
| dependsOn |
consumer preferences
ⓘ
target utility level ⓘ vector of prices ⓘ |
| derivedFrom | expenditure minimization problem ⓘ |
| describes |
consumer demand for goods at constant utility
ⓘ
how demand changes when prices vary holding utility fixed ⓘ |
| domain |
feasible utility levels
ⓘ
positive price vectors ⓘ |
| field |
consumer theory
ⓘ
microeconomics ⓘ welfare economics ⓘ |
| holdsConstant | utility ⓘ |
| implies | Slutsky substitution matrix is negative semidefinite ⓘ |
| mathematicalForm | function h(p,u) mapping prices and utility to demanded bundles ⓘ |
| namedAfter |
John R. Hicks
ⓘ
surface form:
John Hicks
|
| optimizationProblem | minimize expenditure subject to achieving a given utility level ⓘ |
| originatedIn | Hicksian reformulation of demand theory ⓘ |
| property |
compensated price effects are purely substitution effects
ⓘ
homogeneous of degree zero in prices ⓘ satisfies Slutsky symmetry conditions ⓘ |
| relatedConcept |
Slutsky
ⓘ
surface form:
Slutsky equation
expenditure function ⓘ indirect utility function ⓘ |
| relatedTo | Marshallian demand ⓘ |
| requires | solution to a constrained optimization problem ⓘ |
| usedFor |
analyzing tax and price policy impacts on consumers
ⓘ
decomposing price effects into income and substitution components ⓘ |
| usedIn |
cost-of-living index theory
ⓘ
measurement of compensating variation ⓘ measurement of equivalent variation ⓘ welfare analysis ⓘ |
| usedToDefine | substitution effect of a price change ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
Marshallian demand holds income constant instead of utility