Afriat's theorem for indivisible

Afriat's theorem for indivisible

We identify a natural counterpart of the standard CARP for demand data in which goods are all indivisible. We show that the new axiom (DARP, for 'discrete axiom of revealed preference') is necessary and sufficient for the rationalization of the data by a well-behaved utility function. Our...

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Veröffentlicht in:Journal of mathematical economics 2014-10, Vol.54, p.1-6
Hauptverfasser: ges, Francoise, Iehle, Vincent
Format: Artikel
Sprache:eng
Schlagworte:
Axiomatization
Consumer goods
Consumers
Demand
Identification
Preferences
Rationalization
Utility functions
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Zusammenfassung:We identify a natural counterpart of the standard CARP for demand data in which goods are all indivisible. We show that the new axiom (DARP, for 'discrete axiom of revealed preference') is necessary and sufficient for the rationalization of the data by a well-behaved utility function. Our results complement the main finding of Polisson and Quah (2013), who rather minimally modify the original consumer problem with indivisible goods so that the standard CARP still applies. All rights reserved, Elsevier
ISSN:0304-4068
DOI:10.1016/j.jmateco.2014.08.001