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Afriat's original method of proof is restored by using the minmax theorem.
Persistent link: https://www.econbiz.de/10011196016
We provide two new, simple proofs of Afriat's celebrated theorem stating that a finite set of price-quantity observations is consistent with utility maximization if, and only if, the observations satisfy a variation of the Strong Axiom of Revealed Preference known as the Generalized Axiom of...
Persistent link: https://www.econbiz.de/10005593420
We show that a demand function is derived from maximizing a quasilinear utility function subject to a budget constraint if and only if the demand function is cyclically monotone. On finite data sets consisting of pairs of market prices and consumption vectors, this result is equivalent to a...
Persistent link: https://www.econbiz.de/10005593478