Revealed Preference with Stochastic Demand Correspondence
نویسندگان
چکیده
منابع مشابه
Revealed Preference and Stochastic Demand Correspondence: A Unified Theory
We expand the theory of consumer’s behavior, based on the Weak Axiom of Revealed Preference, to permit simultaneously both random choice and choice sets, which are not singletons. We provide a consistency postulate for demand behavior when such behavior is represented in terms of a stochastic demand correspondence. We show that, when the consumer spends her entire wealth, our rationality postul...
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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 de...
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This paper explorers rationalizability issues for finite sets of observations of stochastic choice in the framework introduced by Bandyopadhyay et al. (JET, 1999). Is is argued that a useful approach is to consider indirect preferences on budgets instead of direct preferences on commodity bundles. Stochastic choices are rationalizable in terms of stochastic orderings on the normalized price spa...
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There are three key dimensions by which revealed preference bounds on consumer demand responses to price variation can be improved. The first relates to the improvements that arise from using expansion paths for given relative prices, E-bounds. The second concerns the addition of new price information. Thirdly, there are improvements due to assuming separability. Our previous research has exami...
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ژورنال
عنوان ژورنال: The B.E. Journal of Theoretical Economics
سال: 2010
ISSN: 1935-1704,2194-6124
DOI: 10.2202/1935-1704.1654