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Samuelson's "Dr. Jekyll and Mrs. Jekyll" Problem: A Difficulty in the Concept of the Consumer

  • Robert A. Pollak

    Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

    Abstract

    This chapter describes a rich number of cases in which Samuelson distinguishes between the individual and the family as the consuming agent. The idea that the family demand function can be consistent with axioms of revealed preference is rendered difficult to achieve. Part of the problem involves giving a spouse rather than the family or household a utility function. Then the problem arises as to how the individual demand function is aggregated for the family. On the theoretical side, the chapter considers a Bergson-Samuelson type of social welfare utility function, with implications for Arrow's impossibility theorem. On the application side, the chapter features Becker's 'rotten kid' model problem, holding out the possibility of a solution with a family member as a possible dictator.

    Original languageEnglish
    Title of host publicationSamuelsonian Economics and the Twenty-First Century
    PublisherOxford University Press
    ISBN (Electronic)9780191711480
    ISBN (Print)0199298831, 9780199298839
    DOIs
    StatePublished - Jan 1 2009

    Keywords

    • Arrow's impossibility theorem
    • Bergson-Samuelson social welfare function
    • Consensus model
    • Revealed preference
    • Social indifference curves
    • Utility function

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