REVEALED PREFERENCE--A PROOF OF HOUTHAKKER'S THEOREM.
The article provides a proof of one version of Houthakker's classic theorem on revealed preference theory. The theorem asserts that if a consumer's demand functions satisfy the Strong Axiom of Revealed Preference and certain continuity conditions. It demonstrates two sequences of offer curves which...
| Publicado en: | Econometrica Vol. 41; no. 3; pp. 411 - 424 |
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| Formato: | Artículo |
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Wiley-Blackwell
May73
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | The article provides a proof of one version of Houthakker's classic theorem on revealed preference theory. The theorem asserts that if a consumer's demand functions satisfy the Strong Axiom of Revealed Preference and certain continuity conditions. It demonstrates two sequences of offer curves which possess subsequences which converge to a function that satisfies the right differential equation. The preference theory is demonstrated by the selection of available commodity vectors as if he were maximizing a continuous, strictly quasi-concave utility function subject to a budget constraint. |
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