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On Testing the Utility Hypothesis

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Author Info
Cox, James C
Abstract

In order to be able to conduct a test of the (core) utility hypothesis that is not confounded with tests of (subsidiary) hypotheses that economic agents all have the same preferences and that their preferences are weakly separable, it is necessary to use data that are disaggregated and complete. In order to carry out a utility hypothesis test with complete data, revealed preference theory must first be extended. The generalized axiom of revealed preference is extended to include labor supply and portfolio choice. Then a complete, disaggregated data set is used to test the utility hypothesis and two preference separability hypotheses. Copyright 1997 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 107 (1997)
Issue (Month): 443 (July)
Pages: 1054-78
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Handle: RePEc:ecj:econjl:v:107:y:1997:i:443:p:1054-78

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  1. Jens Leth Hougaard & Tue Tjur & Lars Peter Østerdal, 2006. "Testing Preference Axioms in Discrete Choice experiments: A Reappraisal," Discussion Papers 06-11, University of Copenhagen. Department of Economics. [Downloadable!]
  2. Steven Gjerstad, 2007. "Price Dynamics in an Exchange Economy," Purdue University Economics Working Papers 1205, Purdue University, Department of Economics. [Downloadable!]
  3. James C. Cox, 2009. "Some Issues of Methods, Theories, and Experimental Designs," Experimental Economics Center Working Paper Series 2009-02, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  4. James Andreoni & William T. Harbaugh, 2006. "Power Indices for Revealed Preference Tests," Levine's Bibliography 122247000000001257, UCLA Department of Economics. [Downloadable!]
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  5. Ray Fisman & Shachar Kariv & Daniel Markovits, 2006. "Individual Preferences for Giving," Levine's Bibliography 666156000000000468, UCLA Department of Economics. [Downloadable!]
  6. Syngjoo Choi & Raymond Fisman & Douglas Gale & Shachar Kariv, 2007. "Substantive and Procedural Rationality in Decisions under Uncertainty," Levine's Bibliography 122247000000000946, UCLA Department of Economics. [Downloadable!]
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  8. Philippe Février & Michael Visser, 2004. "A Study of Consumer Behavior Using Laboratory Data," Experimental Economics, Springer, vol. 7(1), pages 93-114, February. [Downloadable!] (restricted)
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  9. Samiran Banerjee & James Murphy, 2006. "A simplified test for preference rationality of two-commodity choice," Experimental Economics, Springer, vol. 9(1), pages 67-75, April. [Downloadable!] (restricted)
  10. Ivan Moscati & Paola Tubaro, 2009. "Random behavior and the as-if defense of rational choice theory in demand experiments," PSE Working Papers 2009-21, PSE (Ecole normale supérieure). [Downloadable!]
  11. Steven Gjerstad, 2004. "Market Dynamics in Edgeworth Exchange," Microeconomics 0401006, EconWPA. [Downloadable!]
  12. Shomu Banerjee & James H. Murphy, 2004. "A Simplified Test for Preference Rationality of Two-Commodity Choice," Emory Economics 0421, Department of Economics, Emory University (Atlanta). [Downloadable!]
  13. Raymond Fisman & Shachar Kariv & Daniel Markovits, 2005. "Individual Preferences for Giving," Game Theory and Information 0504007, EconWPA. [Downloadable!]
  14. Cherchye, Laurens & Vermeulen, Frederic, 2006. "Nonparametric analysis of household labor supply: goodness-of-fit and power of the unitary and the collective model," Discussion Paper 13, Tilburg University, Center for Economic Research. [Downloadable!]
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