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<title>Aggregation problem</title>

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<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Aggregation problem</span></span>

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<p>In <a href="Economics" title="Economics">economics</a>, an <i>aggregate</i> is a summary <a href="Measurement" title="Measurement">measure</a>. It replaces a <a href="Vector_(mathematics_and_physics)" title="Vector (mathematics and physics)">vector</a> that is composed of many <a href="Real_number" title="Real number">real numbers</a> by a single real number, or a <a href="Scalar_(mathematics)" title="Scalar (mathematics)">scalar</a>. Consequently, there occur various problems that are inherent in the formulations that use aggregated variables.<sup id="cite_ref-Fisher87_1-0" class="reference"><a href="#cite_note-Fisher87-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup>

</p><p>The <b>aggregation problem</b> is the problem of finding a valid way to treat an <a href="Empirical" class="mw-redirect" title="Empirical">empirical</a> or theoretical aggregate as if it reacted like a less-aggregated measure, say, about behavior of an individual <a href="Agent_(economics)" title="Agent (economics)">agent</a> as described in general <a href="Microeconomic_theory" class="mw-redirect" title="Microeconomic theory">microeconomic theory</a><sup id="cite_ref-Fisher87_1-1" class="reference"><a href="#cite_note-Fisher87-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> (see <a href="Representative_agent" title="Representative agent">representative agent</a> and <a href="Heterogeneity_in_economics" title="Heterogeneity in economics">heterogeneity in economics</a>).

</p><p>The second meaning of "aggregation problem" is the theoretical difficulty in using and treating laws and theorems that include aggregate variables. A typical example is the <a href="Aggregate_production_function" class="mw-redirect" title="Aggregate production function">aggregate production function</a>.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> Another famous problem is <a href="Sonnenschein-Mantel-Debreu_theorem" class="mw-redirect" title="Sonnenschein-Mantel-Debreu theorem">Sonnenschein-Mantel-Debreu theorem</a>. Most of macroeconomic statements comprise this problem.

</p><p><b>Disaggregation</b> is the decomposition of an aggregate to variables closer to empirical data.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> Examples of aggregates in micro- and <a href="Macroeconomics" title="Macroeconomics">macroeconomics</a> relative to disaggregated counterparts are:

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<th>Aggregate variable</th>

<th>Disaggregated components

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<td><a href="Food_basket" class="mw-redirect" title="Food basket">Food basket</a></td>

<td>Apples, coffee

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<td><a href="Price_level" title="Price level">Price level</a> (of basket)</td>

<td>Price level of apples, coffee

</td></tr>

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<td>Price level of apples</td>

<td>Price level of green apples, red apples

</td></tr>

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<td><a href="Gross_output" title="Gross output">Gross output</a> of a nation</td>

<td>Total sales of a nation's apples, <a href="Steel_coil" class="mw-redirect" title="Steel coil">steel coils</a>

</td></tr>

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<td>A firm's <a href="Capital_stock" class="mw-redirect" title="Capital stock">capital stock</a></td>

<td>Value of a firm's buildings, <a href="Steam_shovel" title="Steam shovel">steam shovels</a>

</td></tr>

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<td><a href="Money_supply" title="Money supply">Money supply</a></td>

<td><a href="Savings_deposits" class="mw-redirect" title="Savings deposits">Savings deposits</a>, <a href="Vault_cash" class="mw-redirect" title="Vault cash">vault cash</a>, <a href="Paper_money" title="Paper money">paper money</a>

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<td>General <a href="Unemployment_rate" class="mw-redirect" title="Unemployment rate">unemployment rate</a></td>

<td>the unemployment rate of civil engineers, <a href="Waiting_staff" title="Waiting staff">waiting staff</a>

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<p>Standard theory uses simple assumptions to derive general, and commonly accepted, results such as the <a href="Law_of_demand" title="Law of demand">law of demand</a> to explain market behavior. An example is the abstraction of a <a href="Composite_good" title="Composite good">composite good</a>. It considers the price of one good changing proportionately to the composite good, that is, all other goods. If this assumption is violated and the agents are subject to aggregated <a href="Utility_function" class="mw-redirect" title="Utility function">utility functions</a>, restrictions on the latter are necessary to yield the law of demand. The aggregation problem emphasizes:

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<ul><li>How broad such restrictions are in microeconomics</li>

<li>Use of broad factor inputs ("labor" and "capital"), real "output", and "investment", as if there was only a single such aggregate is without a solid foundation for rigorously deriving analytical results.</li></ul>

<p><a href="Franklin_Fisher" class="mw-redirect" title="Franklin Fisher">Franklin Fisher</a> notes that this has not dissuaded macroeconomists from continuing to use such concepts.<sup id="cite_ref-Fisher87_1-2" class="reference"><a href="#cite_note-Fisher87-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup>

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<div class="mw-heading mw-heading2"><h2 id="Aggregate_consumer_demand_curve">Aggregate consumer demand curve</h2></div>

<p>The aggregate consumer <a href="Demand_curve" title="Demand curve">demand curve</a> is the summation of the individual consumer demand curves. The aggregation process preserves only two characteristics of individual <a href="Consumer_choice" title="Consumer choice">consumer preference theory</a>—continuity and homogeneity. Aggregation introduces three additional non-price determinants of demand:

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<ul><li>Number of consumers</li>

<li>Distribution of tastes among the consumers</li>

<li>Distribution of incomes among consumers of different taste</li></ul>

<p>Thus if the population of consumers increases, <a href="Ceteris_paribus" title="Ceteris paribus">ceteris paribus</a> the demand curve will shift out; if the proportion of consumers with a strong preference for a good increases, ceteris paribus the demand for that good will change. Finally, if the <a href="Distribution_of_income" class="mw-redirect" title="Distribution of income">distribution of income</a> changes in favor of consumers who prefer the good in question, the demand will shift out. It is important to remember that factors that affect individual demand can also affect aggregate demand. However, net effects must be considered. The most important problem for micro- and macro-economics is the <a href="Sonnenschein%E2%80%93Mantel%E2%80%93Debreu_theorem" title="Sonnenschein–Mantel–Debreu theorem">Sonnenschein–Mantel–Debreu theorem</a>, which shows that almost no properties of the individual preference are inherited to the aggregate demand functions.<sup id="cite_ref-AbuRizvi94_4-0" class="reference"><a href="#cite_note-AbuRizvi94-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-AbuRizvi06_5-0" class="reference"><a href="#cite_note-AbuRizvi06-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Kirman89_6-0" class="reference"><a href="#cite_note-Kirman89-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup>

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<div class="mw-heading mw-heading3"><h3 id="Difficulties_with_aggregation">Difficulties with aggregation</h3></div>

<div class="mw-heading mw-heading4"><h4 id="Sonnenschein-Mantel-Debreu_theorem">Sonnenschein-Mantel-Debreu theorem</h4></div>

<p><a href="Sonnenschein-Mantel-Debreu_theorem" class="mw-redirect" title="Sonnenschein-Mantel-Debreu theorem">Sonnenschein-Mantel-Debreu theorem</a> (SMD theorem) is a theorem for exchange economy that can be expressed in the following way:

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<blockquote><p>for a function that is continuous, homogeneous of degree zero, and in accord with Walras's law,there is an economy with at least as many agents as goods such that, for prices bounded away from zero, the function is the aggregate demand

function for this economy.<sup id="cite_ref-AbuRizvi06_5-1" class="reference"><a href="#cite_note-AbuRizvi06-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup></p></blockquote>

<div class="mw-heading mw-heading4"><h4 id="Independence_assumption">Independence assumption</h4></div>

<p>First, to sum the demand functions without other strong assumptions it must be assumed that they are independent – that is, that one consumer's demand decisions are not influenced by the decisions of another consumer.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> For example, A is asked how many pairs of shoes he would buy at a certain price. A says at that price I would be willing and able to buy two pairs of shoes. B is asked the same question and says four pairs. Questioner goes back to A and says B is willing to buy four pairs of shoes, what do you think about that? A says if B has any interest in those shoes then I have none. Or A, not to be outdone by B, says "then I'll buy five pairs". And on and on. This problem can be eliminated by assuming that the consumers' tastes are fixed in the short run. This assumption can be expressed as assuming that each consumer is an independent idiosyncratic decision maker.

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<div class="mw-heading mw-heading4"><h4 id="No_interesting_properties">No interesting properties</h4></div>

<p>This second problem is more serious. As <a href="David_M._Kreps" title="David M. Kreps">David M. Kreps</a> notes, “total demand will shift about as a function of how individual incomes are distributed even holding total (societal) income fixed. So it makes no sense to speak of <a href="Aggregate_demand" title="Aggregate demand">aggregate demand</a> as a function of price and societal income".<sup id="cite_ref-auto1_8-0" class="reference"><a href="#cite_note-auto1-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> Since any change in <a href="Relative_price" title="Relative price">relative price</a> brings about a redistribution of real income, there is a separate demand curve for every relative price. Kreps continues, "So what can we say about aggregate demand based on the hypothesis that individuals are preference/utility maximizers? Unless we are able to make strong assumptions about the distribution of preferences or income throughout the economy (everyone has the same <a href="Homothetic_preferences" title="Homothetic preferences">homothetic preferences</a> for example) there is little we can say”.<sup id="cite_ref-auto1_8-1" class="reference"><a href="#cite_note-auto1-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> The strong assumptions are that everyone has the same tastes and that each person's tastes remain the same as income changes so additional income is spent in exactly the same way as before.

</p><p>Microeconomist <a href="Hal_Varian" title="Hal Varian">Hal Varian</a> reached a more muted conclusion: "The aggregate demand function will in general possess no interesting properties".<sup id="cite_ref-auto_9-0" class="reference"><a href="#cite_note-auto-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> However, Varian continued: "the <a href="Neoclassical_economics" title="Neoclassical economics">neoclassical theory</a> of the consumer places no restriction on <a href="Aggregate_behavior" title="Aggregate behavior">aggregate behavior</a> in general".<sup id="cite_ref-auto_9-1" class="reference"><a href="#cite_note-auto-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> This means the preference conditions (with the possible exception of continuity) simply do not apply to the aggregate function.

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<ul><li><a href="Aggregate_demand" title="Aggregate demand">Aggregate demand</a></li>

<li><a href="Aggregate_supply" title="Aggregate supply">Aggregate supply</a></li>

<li><a href="Aggregate_production_function" class="mw-redirect" title="Aggregate production function">Aggregate production function</a></li>

<li><a href="Cambridge_capital_controversy" title="Cambridge capital controversy">Cambridge capital controversy</a></li>

<li><a href="Ecological_fallacy" title="Ecological fallacy">Ecological fallacy</a></li>

<li><a href="Price_index" title="Price index">Price index</a></li>

<li><a href="Representative_agent" title="Representative agent">Representative agent</a></li>

<li><a href="Methodological_individualism" title="Methodological individualism">Methodological individualism</a></li>

<li><a href="Social_choice_theory" title="Social choice theory">Social choice theory</a></li></ul>

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<div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2></div>

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<li id="cite_note-Fisher87-1"><span class="mw-cite-backlink">^ <a href="#cite_ref-Fisher87_1-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Fisher87_1-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Fisher87_1-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text">Franklin M. Fisher (1987). "aggregation problem," <i><a href="The_New_Palgrave%3A_A_Dictionary_of_Economics" class="mw-redirect" title="The New Palgrave: A Dictionary of Economics">The New Palgrave: A Dictionary of Economics</a></i>, v. 1, pp.53-55</span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">J. Felipe & J.S.L. McCombie (2014) The Aggregate Production Function: 'Not Even Wrong.' <i>Review of Political Economy</i> 26(1): 60-84.</span>

</li>

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</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://archive.unescwa.org/sd-glossary/disaggregation">"Disaggregation"</a>. <a href="UNESCWA" class="mw-redirect" title="UNESCWA">UNESCWA</a>. <q>Disaggregation is the breakdown of observations, usually within a common branch of a hierarchy, to a more detailed level to that at which detailed observations are taken.</q></cite></span>

</li>

<li id="cite_note-AbuRizvi94-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-AbuRizvi94_4-0">^</a></b></span> <span class="reference-text">S. Abu Turab Rizvi (1994) The microfoundations project in general equilibrium theory. <i>Cambridge Journal of Economics</i> <b>18</b>(4) : 357-377.</span>

</li>

<li id="cite_note-AbuRizvi06-5"><span class="mw-cite-backlink">^ <a href="#cite_ref-AbuRizvi06_5-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-AbuRizvi06_5-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">A. Abu Turab Rizivi (2006) "The Sonnenschein-Matel-Dereu Results after Thirty Years." <i>History of Political Economy</i> <b>38</b> (Suppl_1): 228–245. <a rel="nofollow" class="external free" href="http://ebour.com.ar/pdfs/Rizvi%20The%20Sonnenschein%20Mantel%20Debreu%20Results%20after%20Thirty%20Years.pdf">http://ebour.com.ar/pdfs/Rizvi%20The%20Sonnenschein%20Mantel%20Debreu%20Results%20after%20Thirty%20Years.pdf</a>"</span>

</li>

<li id="cite_note-Kirman89-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-Kirman89_6-0">^</a></b></span> <span class="reference-text">Alan Kirman (1989) "The Intrinsic Limits of Modern Economic Theory: The Emperor has No Clothes." <i>Economic Journal</i> <b>99</b> (395) Supplement: Conference Papers: 126-139.</span>

</li>

<li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text">Besanko and Braeutigam, (2005) p. 169</span>

</li>

<li id="cite_note-auto1-8"><span class="mw-cite-backlink">^ <a href="#cite_ref-auto1_8-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-auto1_8-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">Kreps (1990) p. 63.</span>

</li>

<li id="cite_note-auto-9"><span class="mw-cite-backlink">^ <a href="#cite_ref-auto_9-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-auto_9-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">Varian (1992) p. 153.</span>

</li>

</ol></div></div>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

<ul><li><a href="Franklin_M._Fisher" title="Franklin M. Fisher">Franklin M. Fisher</a> (1987). "aggregation problem," <i><a href="The_New_Palgrave%3A_A_Dictionary_of_Economics" class="mw-redirect" title="The New Palgrave: A Dictionary of Economics">The New Palgrave: A Dictionary of Economics</a></i>, v. 1, pp. 53–55.</li>

<li>Jesus Felipe and Franklin M. Fisher (2008). "aggregation (production)," <i><a href="The_New_Palgrave_Dictionary_of_Economics" title="The New Palgrave Dictionary of Economics">The New Palgrave Dictionary of Economics</a>, 2nd Edition</i>. <a rel="nofollow" class="external text" href="http://www.dictionaryofeconomics.com/article?id=pde2008_A000059&q=aggregation%20(production)&topicid=&result_number=1">Abstract.</a></li>

<li><a href="John_Hicks" title="John Hicks">John R. Hicks</a> (1939, 2nd ed. 1946). <i><a href="Value_and_Capital" title="Value and Capital">Value and Capital</a></i>.</li>

<li><a href="Werner_Hildenbrand" title="Werner Hildenbrand">Werner Hildenbrand</a> (2008). "aggregation (theory)," <i>The New Palgrave Dictionary of Economics</i>, 2nd Edition. <a rel="nofollow" class="external text" href="http://www.dictionaryofeconomics.com/article?id=pde2008_A000247&q=aggregation&topicid=&result_number=4">Abstract.</a></li>

<li>Thomas M. Stoker (2008). "aggregation (econometrics)," <i>The New Palgrave Dictionary of Economics</i>, 2nd Edition. <a rel="nofollow" class="external text" href="http://www.dictionaryofeconomics.com/article?id=pde2008_A000234&q=aggregation&topicid=&result_number=2">Abstract.</a></li>

<li>Douglas W. Blackburn and Andrey D. Ukhov (2008) "Individual vs. Aggregate Preferences: The Case of a Small Fish in a Big Pond," <a rel="nofollow" class="external text" href="http://ssrn.com/abstract=941126">Abstract.</a></li></ul>

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</style><div id="Microeconomics291" style="font-size:114%;margin:0 4em"><a href="Microeconomics" title="Microeconomics">Microeconomics</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">Major topics</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul>

<li><a href="Budget_set" title="Budget set">Budget set</a></li>

<li><a href="Consumer_choice" title="Consumer choice">Consumer choice</a></li>

<li><a href="Convexity_in_economics" title="Convexity in economics">Convexity</a> and <a href="Non-convexity_(economics)" title="Non-convexity (economics)">non-convexity</a></li>

<ul><li><a href="Average_cost" title="Average cost">Average</a></li>

<li><a href="Marginal_cost" title="Marginal cost">Marginal</a></li>

<li><a href="Opportunity_cost" title="Opportunity cost">Opportunity</a>

<ul><li><a href="Implicit_cost" title="Implicit cost">Implicit</a></li></ul></li>

<li><a href="Social_cost" title="Social cost">Social</a></li>

<li><a href="Transaction_cost" title="Transaction cost">Transaction</a></li></ul></li>

<li><a href="Cost%E2%80%93benefit_analysis" title="Cost–benefit analysis">Cost–benefit analysis</a></li>

<li><a href="Deadweight_loss" title="Deadweight loss">Deadweight loss</a></li>

<li><a href="Distribution_(economics)" title="Distribution (economics)">Distribution</a></li>

<li><a href="Economies_of_scale" title="Economies of scale">Economies of scale</a></li>

<li><a href="Economies_of_scope" title="Economies of scope">Economies of scope</a></li>

<li><a href="Elasticity_(economics)" title="Elasticity (economics)">Elasticity</a>

<ul><li><a href="Cross_elasticity_of_demand" title="Cross elasticity of demand">Cross elasticity of demand</a></li>

<li><a href="Income_elasticity_of_demand" title="Income elasticity of demand">Income elasticity of demand</a></li>

<li><a href="Price_elasticity_of_demand" title="Price elasticity of demand">Price elasticity of demand</a></li>

<li><a href="Price_elasticity_of_supply" title="Price elasticity of supply">Price elasticity of supply</a></li></ul></li>

<li><a href="Economic_equilibrium" title="Economic equilibrium">Equilibrium</a>

<ul><li><a href="General_equilibrium_theory" title="General equilibrium theory">General</a></li></ul></li>

<li><a href="Trade" title="Trade">Exchange</a></li>

<li><a href="Externality" title="Externality">Externality</a></li>

<li><a href="Theory_of_the_firm" title="Theory of the firm">Firms</a></li>

<li><a href="Goods_and_services" title="Goods and services">Goods and services</a>

<ul><li><a href="Goods" title="Goods">Goods</a></li>

<li><a href="Service_(economics)" title="Service (economics)">Service</a></li></ul></li>

<li><a href="Family_economics" title="Family economics">Household</a></li>

<li><a href="Income%E2%80%93consumption_curve" title="Income–consumption curve">Income–consumption curve</a></li>

<li><a href="Information_economics" title="Information economics">Information</a></li>

<li><a href="Indifference_curve" title="Indifference curve">Indifference curve</a></li>

<li><a href="Intertemporal_choice" title="Intertemporal choice">Intertemporal choice</a></li>

<li><a href="Market_(economics)" title="Market (economics)">Market</a></li>

<li><a href="Market_failure" title="Market failure">Market failure</a></li>

<li><a href="Market_structure" title="Market structure">Market structure</a>

<ul><li><a href="Competition_(economics)" title="Competition (economics)">Competition</a>

<ul><li><a href="Monopolistic_competition" title="Monopolistic competition">Monopolistic</a></li>

<li><a href="Perfect_competition" title="Perfect competition">Perfect</a></li></ul></li>

<li><a href="Duopoly" title="Duopoly">Duopoly</a></li>

<li><a href="Monopoly" title="Monopoly">Monopoly</a>

<ul><li><a href="Bilateral_monopoly" title="Bilateral monopoly">Bilateral</a></li>

<li><a href="Complementary_monopoly" title="Complementary monopoly">Complementary</a></li></ul></li>

<li><a href="Monopsony" title="Monopsony">Monopsony</a></li>

<li><a href="Oligopoly" title="Oligopoly">Oligopoly</a></li>

<li><a href="Oligopsony" title="Oligopsony">Oligopsony</a></li></ul></li>

<li><a href="Pareto_efficiency" title="Pareto efficiency">Pareto efficiency</a></li>

<li><a href="Preference_(economics)" title="Preference (economics)">Preferences</a></li>

<li><a href="Price" title="Price">Price</a>

<ul><li><a href="Price_controls" title="Price controls">Price controls</a></li>

<li><a href="Price_ceiling" title="Price ceiling">Price ceiling</a></li>

<li><a href="Price_floor" title="Price floor">Price floor</a></li>

<li><a href="Price_discrimination" title="Price discrimination">Price discrimination</a></li>

<li><a href="Price_signal" title="Price signal">Price signal</a></li>

<li><a href="Price_system" title="Price system">Price system</a>/<a href="Free_price_system" title="Free price system">Free</a></li>

<li><a href="Pricing" title="Pricing">Pricing</a></li></ul></li>

<li><a href="Production_set" title="Production set">Production</a></li>

<li><a href="Profit_(economics)" title="Profit (economics)">Profit</a></li>

<li><a href="Public_good_(economics)" class="mw-redirect" title="Public good (economics)">Public goods</a></li>

<li><a href="Rationing" title="Rationing">Rationing</a></li>

<li><a href="Returns_to_scale" title="Returns to scale">Returns to scale</a></li>

<li><a href="Risk_aversion" title="Risk aversion">Risk aversion</a></li>

<li><a href="Scarcity" title="Scarcity">Scarcity</a></li>

<li><a href="Shortage" title="Shortage">Shortage</a>/<a href="Excess_supply" title="Excess supply">Excess supply</a></li>

<li><a href="Substitution_effect" title="Substitution effect">Substitution effect</a></li>

<li><a href="Economic_surplus" title="Economic surplus">Surplus</a></li>

<li><a href="Social_choice_theory" title="Social choice theory">Social choice</a></li>

<li><a href="Supply_and_demand" title="Supply and demand">Supply and demand</a>

<ul><li><a href="Demand" title="Demand">Demand</a>/<a href="Law_of_demand" title="Law of demand">Law of demand</a></li>

<li><a href="Supply_(economics)" title="Supply (economics)">Supply</a>/<a href="Law_of_supply" title="Law of supply">Law of supply</a></li></ul></li>

<li><a href="Uncertainty" title="Uncertainty">Uncertainty</a></li>

<li><a href="Utility" title="Utility">Utility</a>

<ul><li><a href="Expected_utility_hypothesis" title="Expected utility hypothesis">Expected</a></li>

<li><a href="Marginal_utility" title="Marginal utility">Marginal</a></li></ul></li>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Subfields</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Behavioral_economics" title="Behavioral economics">Behavioral</a></li>

<li><a href="Business_economics" title="Business economics">Business</a></li>

<li><a href="Computational_economics" title="Computational economics">Computational</a></li>

<li><a href="Development_economics" title="Development economics">Development</a></li>

<li><a href="Statistical_decision_theory" class="mw-redirect" title="Statistical decision theory">Statistical decision theory</a></li>

<li><a href="Econometrics" title="Econometrics">Econometrics</a></li>

<li><a href="Engineering_economics" title="Engineering economics">Engineering economics</a></li>

<li><a href="Engineering_economics_(civil_engineering)" title="Engineering economics (civil engineering)">Civil engineering economics</a></li>

<li><a href="Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li>

<li><a href="Experimental_economics" title="Experimental economics">Experimental</a></li>

<li><a href="Game_theory" title="Game theory">Game theory</a></li>

<li><a href="Green_economy" title="Green economy">Green</a></li>

<li><a href="Industrial_organization" title="Industrial organization">Industrial organization</a></li>

<li><a href="Institutional_economics" title="Institutional economics">Institutional</a></li>

<li><a href="Labour_economics" title="Labour economics">Labour</a></li>

<li><a href="Managerial_economics" title="Managerial economics">Managerial</a></li>

<li><a href="Mathematical_economics" title="Mathematical economics">Mathematical</a></li>

<li><a href="Microfoundations" title="Microfoundations">Microfoundations of macroeconomics</a></li>

<li><a href="Operations_research" title="Operations research">Operations research</a></li>

<li><a href="Mathematical_optimization" title="Mathematical optimization">Optimization</a></li>

<li><a href="Welfare_economics" title="Welfare economics">Welfare</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">See also</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Economics" title="Economics">Economics</a>

<ul><li><a href="Applied_economics" title="Applied economics">Applied</a></li></ul></li>

<li><a href="Macroeconomics" title="Macroeconomics">Macroeconomics</a></li>

<li><a href="Political_economy" title="Political economy">Political economy</a></li></ul>

</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>

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This article is issued from <a class="external text" title="Last edited on 2025-02-19" href="https://en.wikipedia.org/wiki/?title=Aggregation_problem&oldid=1276612890">Wikipedia</a>. The text is available under <a class="external text" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en">Creative Commons Attribution-Share Alike 4.0</a> unless otherwise noted. Additional terms may apply for the media files.

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