Afriat's Theorem for Indivisible Goods

Francoise Forges and Vincent Iehlé

No 4498, CESifo Working Paper Series from CESifo

Abstract: We identify a natural counterpart of the standard GARP for demand data in which goods are all indivisible. We show that the new axiom (DARP, for “discrete axiom of revealed preference”) is necessary and sufficient for the rationalization of the data by a well-behaved utility function. Our results complement the main finding of Polisson and Quah, Am. Econ. J.: Micro. 5(1) p.28-34 (2013), who rather minimally modify the original consumer problem with indivisible goods so that the standard GARP still applies.

Keywords: Afriat's theorem; GARP; indivisible goods; rationalization; revealed preference (search for similar items in EconPapers)
JEL-codes: C81 D11 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Afriat’s theorem for indivisible goods (2014)
Working Paper: Afriat's theorem for indivisible goods (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4498

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