Demand aggregation and the weak axiom of stochastic revealed preference.

We address the problem of aggregating demand across a group of consumers, who are identical in terms of wealth and face identical price vectors, but vary in their chosen consumption bundles. We show that, when a stochastic demand function is constructed to aggregate a number of deterministic demand...

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Detalles Bibliográficos
Publicado en:Journal of Economic Theory Vol. 107; no. 2; pp. 483 - 490
Autores principales: Bandyopadhyay, Taradas, Bandyopadhyay, Bandyopadhyay, Pattanaik, Prasanta K.
Formato: Artículo
Publicado: Academic Press Inc. December 2002
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:We address the problem of aggregating demand across a group of consumers, who are identical in terms of wealth and face identical price vectors, but vary in their chosen consumption bundles. We show that, when a stochastic demand function is constructed to aggregate a number of deterministic demand functions, satisfaction of the weak axiom of stochastic revealed preference by this stochastic demand function is weaker than the restriction that every underlying deterministic demand function satisfy Samuelson's weak axiom of revealed preference. Journal of Economic Literature Classification Number: D11. |Sc 2002 Elsevier Science (USA).