We present a microeconomic analysis of subsistence consumption in a standard consumer theory setting. We define 'subsistence and saturation induced irrelevance' (SSI) preferences for an individual who makes choices over two goods: a basic good and a non-basic good. The basic good has two key...

We present a microeconomic analysis of subsistence in the consumer theory framework with two goods: the basic good (food) and the non-basic good (non-food). Subsistence results in two regions in the consumption set: the pre subsistence zone in which the individual's subsistence requirement is...

In a two-good setting we axiomatize (a) preferences with subsistence consumption and (b) a generalized version of Leontief preferences. Our axiomatization allows for different levels of subsistence and captures the presence of poverty and prosperity. Our axioms are based on the irrelevance of...

This paper provides a microeconomic analysis of subsistence consumption in the consumer theory framework. Our key concepts are 'irrelevance' of a good in certain consumption bundles (increasing its amount does not make the consumer better off) and an 'unhappy set' (any bundle outside such a set...

In a two-good setting we axiomatize (a) preferences with subsistence consumption and (b) a generalized version of Leontief preferences. Our axiomatization allows for different levels of subsistence and captures the presence of poverty and prosperity. Our axioms are based on the irrelevance of...

This paper provides a microeconomic analysis of subsistence consumption in the consumer theory framework. Our key concepts are 'irrelevance' of a good in certain consumption bundles (increasing its amount does not make the consumer better off) and an 'unhappy set' (any bundle outside such a set...

In a two-good setting we axiomatize (a) preferences with subsistence consumption and (b) a generalized version of Leontief preferences. Our axiomatization allows for different levels of subsistence and captures the presence of poverty and prosperity. Our axioms are based on the irrelevance of...

In a two-good setting we axiomatize (a) preferences with subsistence consumption and (b) a generalized version of Leontief preferences. Our axiomatization allows for different levels of subsistence and captures the presence of poverty and prosperity. Our axioms are based on the irrelevance of...

In this paper we consider the problem of financing infrastructure when the regulator faces a budget constraint. The optimal budget-constrained mechanism satisfies four properties. The first property is bunching at the top, that is the more efficient firms produce the same quantity. The second...

Why do political constituencies delegate decision power to representative assemblies? And how is the size of such assemblies determined? We analyze these questions of constitutional design in a model with voters learning their preferred alternative only after engaging in costly information...