ABSTRACT
The utility foundation of the Cobb-Douglas demand function is known for the one and two attributes cases. It is unknown in the case of three or more attributes, a regular need for modellers. In this article, we contribute by founding from a programme of (quasi-linear) utility maximization a Cobb-Douglas demand function of an arbitrary large number of attributes. We also contribute by providing simple formulas for consumer surplus and social welfare. By generalizing previous results, our research offers a normative foundation to a larger class of demand functions.
Acknowledgements
Stanko Dimitrov acknowledges funding from the Natural Sciences and Engineering Research Council of Canada for partially supporting this work.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 The authors thank an anonymous reviewer for suggesting this generalization.