PUB - Publikationen an der Universität Bielefeld

We suggest in this paper to treat the problem of smoothing demand by aggregation in a two-step procedure, corresponding to the two different constituents of consumption characteristics, wealth and preferences. Instead of imposing a manifold structure on preferences we exploit the nice structure of wealth-space. The first step of this procedure, aggregation with respect to wealth, is carried out. It is shown that, for any preference, aggregation with respect to wealth yields a mean demand which is almost everywhere C 1. Moreover, it is shown that for an important class of preferences, vanishing Gaussian curvature of indifference surfaces does not destroy differentiability of the mean demand function.