Revealed Preference Tests Using Supermarket Data: the Money Pump
نویسندگان
چکیده
We use a money pump argument to measure deviations from the revealed preference axioms. Using a panel data set of food expenditures, we find a large number of violations of the weak axiom of revealed preference. The money pump costs are small, which indicate that the violations of revealed preference are not severe. While most households’ behavior deviates from rationality, by our measure they are close to being rational.
منابع مشابه
Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 Revealed Preference Tests Using Supermarket Data: the Money Pump
We use a money pump argument to measure deviations from the revealed preference axioms. Using a panel data set of food expenditures, we find a large number of violations of the weak axiom of revealed preference. The money pump costs are small, which indicate that the violations of revealed preference are not severe. While most households’ behavior deviates from rationality, by our measure they ...
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