%0 Journal Article %1 nock2009information %A Nock, Richard %A Magdalou, Brice %A Sanz, Nicolas %A Briys, Eric %A Celimene, Fred %A Nielsen, Frank %D 2009 %K geometry information %T Information geometries and Microeconomic Theories %U http://arxiv.org/abs/0901.2586 %X More than thirty years ago, Charnes, Cooper and Schinnar (1976) established an enlightening contact between economic production functions (EPFs) -- a cornerstone of neoclassical economics -- and information theory, showing how a generalization of the Cobb-Douglas production function encodes homogeneous functions. As expected by Charnes et al., the contact turns out to be much broader: we show how information geometry as pioneered by Amari and others underpins static and dynamic descriptions of microeconomic cornerstones. We show that the most popular EPFs are fundamentally grounded in a very weak axiomatization of economic transition costs between inputs. The strength of this characterization is surprising, as it geometrically bonds altogether a wealth of collateral economic notions -- advocating for applications in various economic fields --: among all, it characterizes (i) Marshallian and Hicksian demands and their geometric duality, (ii) Slutsky-type properties for the transformation paths, (iii) Roy-type properties for their elementary variations.

@article{nock2009information, abstract = {More than thirty years ago, Charnes, Cooper and Schinnar (1976) established an enlightening contact between economic production functions (EPFs) -- a cornerstone of neoclassical economics -- and information theory, showing how a generalization of the Cobb-Douglas production function encodes homogeneous functions. As expected by Charnes \textit{et al.}, the contact turns out to be much broader: we show how information geometry as pioneered by Amari and others underpins static and dynamic descriptions of microeconomic cornerstones. We show that the most popular EPFs are fundamentally grounded in a very weak axiomatization of economic transition costs between inputs. The strength of this characterization is surprising, as it geometrically bonds altogether a wealth of collateral economic notions -- advocating for applications in various economic fields --: among all, it characterizes (i) Marshallian and Hicksian demands and their geometric duality, (ii) Slutsky-type properties for the transformation paths, (iii) Roy-type properties for their elementary variations.}, added-at = {2019-12-11T14:49:37.000+0100}, author = {Nock, Richard and Magdalou, Brice and Sanz, Nicolas and Briys, Eric and Celimene, Fred and Nielsen, Frank}, biburl = {https://www.bibsonomy.org/bibtex/2d06a12222165053820a569301c1e2276/kirk86}, description = {[0901.2586] Information geometries and Microeconomic Theories}, interhash = {5d0342c0d1230d8f5d4a5715d4c172f8}, intrahash = {d06a12222165053820a569301c1e2276}, keywords = {geometry information}, note = {cite arxiv:0901.2586}, timestamp = {2019-12-11T14:49:37.000+0100}, title = {Information geometries and Microeconomic Theories}, url = {http://arxiv.org/abs/0901.2586}, year = 2009 }