A simplified test for preference rationality of two-commodity choice
We 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
Volume (Year): 9 (2006)
Issue (Month): 1 (April)
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- James Andreoni, 2001. "Giving According to GARP," Theory workshop papers 339, UCLA Department of Economics.
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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.
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