Principle of Subordination of Needs may not Necessarily Lead to the Strictly Lexicographical Order of Choices
This article is aimed to show that there may be a false within Dr. Marc Lavoie's argument about the relationship between principle of subordination of needs and strictly lexicographical order of choices. Principle of Subordination of Needs Principle of subordination of needs is one of seven principles of consumer choices in Post-Keynesian Economics. Basically, this principle argues that each consumer has a pyramid or hierarchy of needs. We can say Maslow's model of hierarchy of needs is a good example to express this principle. According to this principle, human's needs are hierarchical. Some needs are relatively more important than others. If consumer has some positive income, this consumer will firstly spend the income on the most important need (for example, food) in order to satisfy this most important need, and then if she still have some residual income, she will spend her residual income on the relatively less important need in order to satisfy it. Actually, this...