Econometrica: Oct 1963, Volume 31, Issue 4
An Empirical Test of Revealed Preference Theory
Anthony Y. C. KooThis paper attempts to test empirically the strong axiom of the revealed preference theory using consumer food panel data. For the purpose of the test the theory is recast in determinantal form to facilitate computer programming. Each family is first checked for complete consistency in all purchases. If it should fail to so behave, the second step is to ascertain the maximal subset of purchases that is consistent. Finally, we ascertain the maximal subset that is not inconsistent.
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