Echenique, Federico and Lee, SangMok and Shum, Matthew (2010) Revealed Preference Tests using Supermarket Data: the Money Pump. Social Science Working Paper, 1328. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20100927-114449846
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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.
| Item Type: | Report or Paper (Working Paper) | ||||||
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| Group: | Social Science Working Papers | ||||||
| Subject Keywords: | Revealed preference; GARP; Money pump; Demand theory | ||||||
| Series Name: | Social Science Working Paper | ||||||
| Issue or Number: | 1328 | ||||||
| Classification Code: | JEL classication: D11,D12 | ||||||
| Record Number: | CaltechAUTHORS:20100927-114449846 | ||||||
| Persistent URL: | https://resolver.caltech.edu/CaltechAUTHORS:20100927-114449846 | ||||||
| Usage Policy: | No commercial reproduction, distribution, display or performance rights in this work are provided. | ||||||
| ID Code: | 20165 | ||||||
| Collection: | CaltechAUTHORS | ||||||
| Deposited By: | Katherine Johnson | ||||||
| Deposited On: | 28 Sep 2010 16:29 | ||||||
| Last Modified: | 26 Nov 2019 11:15 |
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