Normality of demand in a two-goods setting

Laurens Cherchye, Thomas Demuynck and Bram De Rock

No 549206, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: We study the testable implications of normal demand in a two-goods setting. For a finite dataset on prices and quantities, we present the revealed preference conditions for normality of one or both goods. Our characterization provides an intuitive extension of the well-known Weak Axiom of Revealed Preference, and is easy to use in practice. We illustrate the empirical relevance of our theoretical results through an application to the experimental dataset presented in Andreoni and Miller (2002).

Date: 2016-09
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Published in Discussion paper series, DPS16.17 pages:1-22

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Related works:
Journal Article: Normality of demand in a two-goods setting (2018)
Working Paper: Normality of Demand in a Two-Goods Setting (2018)
Working Paper: Normality of Demand in a Two-Goods Setting (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:549206

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