ABSTRACT
In Chapter 1 we modified the familiar indifference curve/budget line analysis, in commodity space, in the simplest way allowing a recognition of consumption time; that is, we added a time-use constraint. In Chapter 2, by contrast, we at first followed Gossen by emphasizing the time-use constraint alone and (a different matter) by adopting his independent and linear marginal utility schedules; only later on was an expenditure constraint considered and a more adequate representation of preferences adopted. In the present chapter we shall continue to ‘move on’ from Gossen by nearly always considering both time and expenditure constraints and by consistently adopting a more appropriate characterization of preferences over time-uses. In the earlier part of the chapter we stay close to such familiar concerns as the Slutsky equation, etc., but later on we turn to less well-trodden paths. The analysis throughout will be of a purely explanatory nature, all normative issues being postponed to Chapter 4.
