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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- William T. Harbaugh & Kate Krause & Timothy R. Berry, 2001. "GARP for Kids: On the Development of Rational Choice Behavior," American Economic Review, American Economic Association, vol. 91(5), pages 1539-1545, December.
- Rosa L. Matzkin & Marcel K. Richter, 1987.
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Cowles Foundation Discussion Papers
844, Cowles Foundation for Research in Economics, Yale University.
- Cox, James C, 1997. "On Testing the Utility Hypothesis," Economic Journal, Royal Economic Society, vol. 107(443), pages 1054-78, July.
- Jan Heufer, 2007. "Revealed Preference and the Number of Commodities," Ruhr Economic Papers 0036, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Jan Heufer, 2013. "Testing revealed preferences for homotheticity with two-good experiments," Experimental Economics, Springer, vol. 16(1), pages 114-124, March.
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