A simplified test for preference rationality of two-commodity choice
AbstractWe provide a simplified test to determine if choice data from a two-commodity consumption set satisfies the Generalized Axiom of Revealed Preference (GARP), and thus the preference or utility maximization hypothesis. We construct an algorithm for this test and illustrate its application on experimental choice data. Copyright Springer Science + Business Media, LLC 2006
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Bibliographic InfoArticle provided by Springer in its journal Experimental Economics.
Volume (Year): 9 (2006)
Issue (Month): 1 (April)
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Web page: http://www.springerlink.com/link.asp?id=102888
Revealed preference; GARP; Laboratory experiments; Rationality;
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