Testing Consumer Theory: Evidence From a Natural Field Experiment

Arbeitspapier

We present evidence from a natural field experiment designed to shed light on whether individual behavior is consistent with a neoclassical model of utility maximization subject to budget constraints. We do this through the lens of a field experiment on charitable giving. We find that the behavior of at least 80% of individuals, on both the extensive and intensive margins, can be rationalized within a standard neoclassical choice model in which individuals have preferences, defined over own consumption and their contribution towards the charitable good, satisfying the axioms of revealed preference.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 54

Classification and Topics

• Classification: Wirtschaft ; Field Experiments ; Microeconomic Behavior: Underlying Principles ; Consumer Economics: Empirical Analysis ; Altruism; Philanthropy; Intergenerational Transfers
• Subject: natural field experiment ; revealed preference

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Adena, Maja ; Huck, Steffen ; Rasul, Imran
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
• (where): München und Berlin
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/185724
• Last update: 10.03.2025, 11:44 AM CET