An Empirical Test of Revealed Preference Theory

This paper attempts to test empirically the strong axiom of the revealed preference theory using consumer food panel data. For the purpose of the test the theory is recast in determinantal form to facilitate computer programming. Each family is first checked for complete consistency in all purchases...

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Bibliographic Details
Published in:Econometrica 1963-10, Vol.31 (4), p.646-664
Main Author: Koo, Anthony Y. C.
Format: Article
Language:English
Subjects:
Commodities
Consumer behavior
Consumer information
Consumer preferences
Economic utility
Food consumption
Homes
Households
Hypotheses
Preferences
Prices
Test theory
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Summary:This paper attempts to test empirically the strong axiom of the revealed preference theory using consumer food panel data. For the purpose of the test the theory is recast in determinantal form to facilitate computer programming. Each family is first checked for complete consistency in all purchases. If it should fail to so behave, the second step is to ascertain the maximal subset of purchases that is consistent. Finally, we ascertain the maximal subset that is not inconsistent.
ISSN:0012-9682
1468-0262
DOI:10.2307/1909164