A general revealed preference test for quasilinear preferences: theory and experiments

Marco Castillo () and Mikhail Freer ()
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Marco Castillo: Texas A&M University
Mikhail Freer: University of Essex

Experimental Economics, 2023, vol. 26, issue 3, No 8, 673-696

Abstract: Abstract We provide a generalized revealed preference test for quasilinear preferences. The test applies to nonlinear budget sets and non-convex preferences as those found in taxation and nonlinear pricing contexts. We study the prevalence of quasilinear preferences in a laboratory real-effort task experiment with nonlinear wages. The experiment demonstrates the empirical relevance of our test. We find support for either convex (non-separable) preferences or quasilinear preferences but weak support for the hypothesis of both quasilinear and convex preferences.

Keywords: Revealed preferences; Quasilinear preferences; Lab experiments (search for similar items in EconPapers)
JEL-codes: C91 D11 D12 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10683-023-09790-1

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