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The Weak Axiom of Revealed Preference in a Productive Economy

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Author Info
Grodal, B
Hildenbrand, W
Abstract

The authors consider an economy with pure factors of production, private ownership of endowments, and constant returns to scale in production. Typically in such an economy, the weak axiom of revealed preference for market demand does not hold. The main reason for this is that the income distribution in such a private ownership economy depends too sensitively on the price system. Copyright 1989 by The Review of Economic Studies Limited.

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Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 56 (1989)
Issue (Month): 4 (October)
Pages: 635-39
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Handle: RePEc:bla:restud:v:56:y:1989:i:4:p:635-39

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