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

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Year of publication:	2006
Authors:	Banerjee, Samiran ; Murphy, James
Published in:	Experimental Economics. - Springer, ISSN 1386-4157. - Vol. 9.2006, 1, p. 67-75
Publisher:	Springer
Subject:	Revealed preference \| GARP \| Laboratory experiments \| Rationality

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005256670