Non Utility Maximizing Behaviour: Probabilistic Choice in a Budget Set "Box". Properties of Expected Demand Functions

• In this paper we use some(even a convex) probabilistic frequency functions in two choice variables defined over the budget set? box? and calculate the expected demand to study its properties The expected demands have own price negativity , are normal goods and are homogeneous of degree zero*. The detailed properties of deterministic demand functions can be replaced with similar properties for some expected demand functions the latter found with fewer and behaviourally less restrictive assumptions. To assume a deterministic utility function to be maximized is more restrictive in a behavioural sense than assuming random choice between some boundaries.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Non-maximising behaviour

Bounded rationality

Random choice

Expected demand

Publication and Content Type

vet (subject category)

rap (subject category)