Revealed Preference with Stochastic Demand Correspondence
AbstractWe extend the revealed preference theory of consumers behavior originating in Samuelsons Weak Axiom of Revealed Preference to simultaneously permit both non-singleton choice sets and random choice. We provide a consistency postulate for demand behavior when such behavior is represented in terms of a stochastic demand correspondence. When the consumer spends his or her entire wealth, our rationality postulate is equivalent to a condition we term stochastic substitutability. This equivalence generates as special cases in most of the basic results regarding consumers demand behavior in the existing revealed preference literature.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.
Volume (Year): 10 (2010)
Issue (Month): 1 (August)
Contact details of provider:
Web page: http://www.degruyter.com
Other versions of this item:
- Indraneel Dasgupta, . "Revealed Preference with Stochastic Demand Correspondence," Discussion Papers 07/06, University of Nottingham, School of Economics.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eddie Dekel, 1997.
"A Unique Subjective State Space for Unforeseen Contingencies,"
1202, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dekel, Eddie & Lipman, Barton L & Rustichini, Aldo, 2001. "Representing Preferences with a Unique Subjective State Space," Econometrica, Econometric Society, vol. 69(4), pages 891-934, July.
- J. C. R. Alcantud, 2003.
"Stochastic demand correspondences and their aggregation properties,"
0309001, EconWPA, revised 08 Jan 2005.
- J. C. R. Alcantud, 2005. "Stochastic demand correspondences and their aggregation properties," Microeconomics 0501004, EconWPA.
- Dasgupta, Indraneel, 2009.
"Supply Theory sans Profit-Maximization,"
IZA Discussion Papers
4018, Institute for the Study of Labor (IZA).
- Daniel McFadden, 2005. "Revealed stochastic preference: a synthesis," Economic Theory, Springer, vol. 26(2), pages 245-264, 08.
- Barbera, Salvador & Pattanaik, Prasanta K, 1986. "Falmagne and the Rationalizability of Stochastic Choices in Terms of Random Orderings," Econometrica, Econometric Society, vol. 54(3), pages 707-15, May.
- WILLIAM J. McCAUSLAND, 2009. "Random Consumer Demand," Economica, London School of Economics and Political Science, vol. 76(301), pages 89-107, 02.
- Chiappori, Pierre-Andre & Rochet, Jean-Charles, 1987. "Revealed Preferences and Differentiable Demand: Notes and Comments," Econometrica, Econometric Society, vol. 55(3), pages 687-91, May.
- John Quah, 2006.
"Weak axiomatic demand theory,"
Springer, vol. 29(3), pages 677-699, November.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Bandyopadhyay, Taradas & Bandyopadhyay, Bandyopadhyay & Pattanaik, Prasanta K., 2002. "Demand Aggregation and the Weak Axiom of Stochastic Revealed Preference," Journal of Economic Theory, Elsevier, vol. 107(2), pages 483-489, December.
- Bandyopadhyay, Taradas & Dasgupta, Indraneel & Pattanaik, Prasanta K., 1999. "Stochastic Revealed Preference and the Theory of Demand," Journal of Economic Theory, Elsevier, vol. 84(1), pages 95-110, January.
- Indraneel Dasgupta, 2005. "Consistent firm choice and the theory of supply," Economic Theory, Springer, vol. 26(1), pages 167-175, 07.
- Taradas Bandyopadhyay & Indraneel Dasgupta & Prasanta Pattanaik, 2004. "A general revealed preference theorem for stochastic demand behavior," Economic Theory, Springer, vol. 23(3), pages 589-599, March.
- Sen, Amartya K, 1971. "Choice Functions and Revealed Preference," Review of Economic Studies, Wiley Blackwell, vol. 38(115), pages 307-17, July.
- Indraneel Dasgupta & Prasanta Pattanaik, 2007. "‘Regular’ choice and the weak axiom of stochastic revealed preference," Economic Theory, Springer, vol. 31(1), pages 35-50, April.
- Dasgupta, Indraneel, 2009.
"Contraction Consistent Stochastic Choice Correspondence,"
IZA Discussion Papers
4596, Institute for the Study of Labor (IZA).
- Indraneel Dasgupta, 2011. "Contraction consistent stochastic choice correspondence," Social Choice and Welfare, Springer, vol. 37(4), pages 643-658, October.
- Indraneel Dasgupta, . "Contraction consistent stochastic choice correspondence," Discussion Papers 08/04, University of Nottingham, School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.