Shigemoto, Kazuyasu - EconWPA - 2004
We apply the Weber-Fechner's law, which represents the relation between the magnitude of physical stimulus and the … function in the form p_i=d u_i/d x_i. The explicit quantitative form of each utility function, which is suggested by the Weber-Fechner …'s law, becomes u_i(x_i)=A_i log (x_i/x(0)_i). Then we obtain each demand function in the familiar form p_i=A_i/x_i. …