The Problems of Testing Preference Axioms with Revealed Preference Theory

Abstract: In economics, it has often been claimed that testing choice data for violation of certain axioms-particularly if the choice data is observed under laboratory conditions-allows conclusions about the validity of certain preference axioms and the neoclassical maximization hypothesis. In this paper I argue that these conclusions are unfounded. In particular, it is unclear what exactly is tested, and the interpretation of the test results are ambiguous. Further, there are plausible reasons why the postulated choice axioms should not hold. Last, these tests make implicit assumptions about beliefs that further blur the interpretations of the results. The tests therefore say little if anything about the validity of certain preference axioms or the maximization hypothesis.

Object Details

• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource
• Language: Englisch

References and Relationships

• Bibliographic citation: The Problems of Testing Preference Axioms with Revealed Preference Theory ; volume:26 ; number:2 ; year:2004 ; pages:382-397 ; extent:16 ; Analyse & Kritik ; 26, Heft 2 (2004), 382-397 (gesamt 16)

Contributors, Places and Time

• Creator: Grüne, Till

Further information

• DOI: 10.1515/auk-2004-0204
• URN: urn:nbn:de:101:1-2404171613442.113734451931
• Rights: Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 14.08.2025, 10:48 AM CEST