Disentangling revealed preference from rationalization by a preference

Pablo Schenone

Economics Letters, 2024, vol. 235, issue C

Abstract: The weak axiom of revealed preference (WARP) ensures that the revealed preference (i) is a preference relation (i.e., it is complete and transitive) and (ii) rationalizes the choices. However, when WARP fails, either one of these two properties is violated, but it is unclear which one it is. We provide an alternative characterization of WARP by showing that WARP is equivalent to the conjunction of two axioms each of which separately guarantees (i) and (ii).

Keywords: Revealed preference; Weak axiom; Choice correspondence; Rationalization (search for similar items in EconPapers)
JEL-codes: D01 D11 D90 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:235:y:2024:i:c:s0165176523005402

DOI: 10.1016/j.econlet.2023.111514

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