WARP does not imply SARP for more than two commodities.

A study was conducted to determine whether the Weak Axiom of Revealed Preference (WARP) for consumer demand functions implies the Strong Axiom of Revealed Preference (SARP) for more than two commodities. In previous research Gale constructed an example where WARP was satisfied, but SARP was violate...

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Detalles Bibliográficos
Publicado en:Journal of Economic Theory Vol. 62; pp. 152 - 161
Autores principales: Peters, Hans, Wakker, Peter
Formato: Artículo
Publicado: Academic Press Inc. February 1994
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: February 1994
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      pub: Academic Press Inc.
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        10.1006/jeth.1994.1008
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        atl: WARP does not imply SARP for more than two commodities.
      aug:
        au:
          Peters, Hans
          Wakker, Peter
      su:
        Consumer preferences
        Mathematical models
        Economic demand
      sug:
        subj:
          Consumer preferences
          Mathematical models
          Economic demand
      ab: A study was conducted to determine whether the Weak Axiom of Revealed Preference (WARP) for consumer demand functions implies the Strong Axiom of Revealed Preference (SARP) for more than two commodities. In previous research Gale constructed an example where WARP was satisfied, but SARP was violated. Gale's construction, however, applies only to the case of three commodities and leaves the question open for more commodities. By providing actual counterexamples for four or more commodities, it is possible to demonstrate in a constructive way that WARP cannot imply SARP. These examples are developed by a nontrivial embedding of Gale's counterexample in higher dimensions. Demand functions defined on convex compact non-linear budget sets are used as an intermediate tool.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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