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Persistent link: https://www.econbiz.de/10011377628
We provide a simplified test to determine if choice data from a two-commodity consumption set satisfies the Generalized Axiom of Revealed Preference (GARP), and thus the preference or utility maximization hypothesis. We construct an algorithm for this test and illustrate its application on...
Persistent link: https://www.econbiz.de/10005256670