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The demand for goods under mixture aversion
Journal article   Peer reviewed

The demand for goods under mixture aversion

D.J. Butler and P.G. Moffatt
The Manchester School, Vol.68(3), pp.349-359
2000
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Abstract

We analyse the demand for goods which the consumer has an aversion to consuming in mixtures. Examples are presented. It is suggested that the axiom of non-satiation should be relaxed in order for the model to be internally consistent. The indifference map with mixture aversion and satiation is constructed and is shown to have very unusual properties. It is then demonstrated that constrained maximization of the underlying utility function can result in both goods being consumed. It is also demonstrated that the type of goods analysed here can exhibit the rare characteristic of Giffenity.

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1 Clinical & Life Sciences
1.100 Substance Abuse
1.100.375 Alcohol Use
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Economics
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Economics & Business
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