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A three-stage experimental test of revealed preference
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Hammond, Peter J. and Traub, Stefan (2012) A three-stage experimental test of revealed preference. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2012 (Number 72).
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
A powerful test of Varian's (1982) generalised axiom of revealed preference
(GARP) with two goods requires the consumer's budget line to pass through
two demand vectors revealed as chosen given other budget sets. In an experiment
using this idea, each of 41 student subjects faced a series of 16 successive
grouped portfolio selection problems. Each group of selection problems
had up to three stages, where later budget sets depended on that subject'choices at earlier stages in the same group. Only 49% of subjects' choices
were observed to satisfy GARP exactly, even by our relatively generous nonparametric
test.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Stochastic models, Revealed preference theory , Economics -- Mathematical models | ||||
Series Name: | CAGE Online Working Paper Series | ||||
Publisher: | Department of Economics, University of Warwick | ||||
Place of Publication: | Coventry, UK | ||||
Official Date: | January 2012 | ||||
Dates: |
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Volume: | Volume 2012 | ||||
Number: | Number 72 | ||||
Number of Pages: | 30 | ||||
Institution: | University of Warwick | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Date of first compliant deposit: | 1 August 2016 | ||||
Date of first compliant Open Access: | 1 August 2016 | ||||
Funder: | European Commission (EC), University of Warwick | ||||
Grant number: | MEXC-CT-2006-041121 (EC) |
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