Revealed preference in a discrete consumption space

Arbeitspapier

We show that an agent maximizing some utility function on a discrete (as opposed to continuous) consumption space will obey the generalized axiom of revealed preference (GARP) so long as the agent obeys cost efficiency. Cost efficiency will hold if there is some good, outside the set of goods being studied by the modeler, that can be consumed by the agent in continuous quantities. An application of Afriat's Theorem then guarantees that there is a strictly increasing utility function on the discrete consumption space that rationalizes price and demand observations in that space.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFS Working Papers ; No. W12/03

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: generalized axiom of revealed preference ; Afriat's Theorem ; discrete demand ; utility maximization

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Polisson, Matthew ; Quah, John
• Ereignis: Veröffentlichung
• (wer): Institute for Fiscal Studies (IFS)
• (wo): London
• (wann): 2012

Weitere Informationen

• DOI: doi:10.1920/wp.ifs.2012.1203
• Handle: http://hdl.handle.net/10419/91519
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ