Published June 2010
| Accepted Version
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Revealed Preference Tests using Supermarket Data: the Money Pump
- Creators
-
Echenique, Federico
- Lee, SangMok
-
Shum, Matthew
Abstract
We use a money pump argument to measure deviations from the revealed preference axioms. Using a panel data set of food expenditures, we find a large number of violations of the weak axiom of revealed preference. The money pump costs are small, which indicate that the violations of revealed preference are not severe. While most households' behavior deviates from rationality, by our measure they are close to being rational.
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Additional details
- Eprint ID
- 20165
- Resolver ID
- CaltechAUTHORS:20100927-114449846
- Created
-
2010-09-28Created from EPrint's datestamp field
- Updated
-
2019-11-26Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 1328