Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 General Revealed Preference Theory
نویسندگان
چکیده
We provide general conditions under which an economic theory has a universal axiomatization: one that leads to testable implications. Roughly speaking, if we obtain a universal axiomatization when we assume that unobservable parameters (such as preferences) are observable, then we can obtain a universal axiomatization purely on observables. The result “explains” classical revealed preference theory, as applied to individual rational choice. We obtain new applications to Nash equilibrium theory and Pareto optimal choice. JEL classification numbers: A10,D00
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