We show that revealed preference tests, which allow a small degree of

By checking whether consumer demand satis es the axioms of revealed preference, one can test the empirical validity of the neoclassical theory of consumer behaviour. However, applying the axioms to actual consumer purchase data is di cult, if not impossible, since serious problems of both a...

By checking whether consumer demand satisfies the axioms of revealed preference, one can test the empirical validity of the neoclassical theory of consumer behavior. However, applying the axioms to actual consumer purchase data is difficult, if not impossible, since it poses serious problems of...