Revealed smooth nontransitive preferences

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Standard

Revealed smooth nontransitive preferences. / Keiding, Hans; Tvede, Mich .

In: Economic Theory, Vol. 54, No. 3, 2013, p. 463-484 .

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Keiding, H & Tvede, M 2013, 'Revealed smooth nontransitive preferences', Economic Theory, vol. 54, no. 3, pp. 463-484 . https://doi.org/10.1007/s00199-013-0765-z

APA

Keiding, H., & Tvede, M. (2013). Revealed smooth nontransitive preferences. Economic Theory, 54(3), 463-484 . https://doi.org/10.1007/s00199-013-0765-z

Vancouver

Keiding H, Tvede M. Revealed smooth nontransitive preferences. Economic Theory. 2013;54(3):463-484 . https://doi.org/10.1007/s00199-013-0765-z

Author

Keiding, Hans ; Tvede, Mich . / Revealed smooth nontransitive preferences. In: Economic Theory. 2013 ; Vol. 54, No. 3. pp. 463-484 .

Bibtex

@article{d62c09c058dc4421a04ab54ad9c8eb57,
title = "Revealed smooth nontransitive preferences",
abstract = "In the present paper, we are concerned with the behavioural consequences of consumers having nontransitive preference relations. Data sets consist of finitely many observations of price vectors and consumption bundles. A preference relation rationalizes a data set provided that for every observed consumption bundle, all strictly preferred bundles are more expensive than the observed bundle. Our main result is that data sets can be rationalized by a smooth nontransitive preference relation if and only if prices can normalized such that the law of demand is satisfied. Market data sets consist of finitely many observations of price vectors, lists of individual incomes and aggregate demands. We apply our main result to characterize market data sets consistent with equilibrium behaviour of pure-exchange economies with smooth nontransitive consumers.",
keywords = "Faculty of Social Sciences, Law of demand, Revealed preferences , GARP, SARP",
author = "Hans Keiding and Mich Tvede",
note = "JEL Classification D1; D5",
year = "2013",
doi = "10.1007/s00199-013-0765-z",
language = "English",
volume = "54",
pages = "463--484 ",
journal = "Economic Theory",
issn = "0938-2259",
publisher = "Springer",
number = "3",

}

RIS

TY - JOUR

T1 - Revealed smooth nontransitive preferences

AU - Keiding, Hans

AU - Tvede, Mich

N1 - JEL Classification D1; D5

PY - 2013

Y1 - 2013

N2 - In the present paper, we are concerned with the behavioural consequences of consumers having nontransitive preference relations. Data sets consist of finitely many observations of price vectors and consumption bundles. A preference relation rationalizes a data set provided that for every observed consumption bundle, all strictly preferred bundles are more expensive than the observed bundle. Our main result is that data sets can be rationalized by a smooth nontransitive preference relation if and only if prices can normalized such that the law of demand is satisfied. Market data sets consist of finitely many observations of price vectors, lists of individual incomes and aggregate demands. We apply our main result to characterize market data sets consistent with equilibrium behaviour of pure-exchange economies with smooth nontransitive consumers.

AB - In the present paper, we are concerned with the behavioural consequences of consumers having nontransitive preference relations. Data sets consist of finitely many observations of price vectors and consumption bundles. A preference relation rationalizes a data set provided that for every observed consumption bundle, all strictly preferred bundles are more expensive than the observed bundle. Our main result is that data sets can be rationalized by a smooth nontransitive preference relation if and only if prices can normalized such that the law of demand is satisfied. Market data sets consist of finitely many observations of price vectors, lists of individual incomes and aggregate demands. We apply our main result to characterize market data sets consistent with equilibrium behaviour of pure-exchange economies with smooth nontransitive consumers.

KW - Faculty of Social Sciences

KW - Law of demand

KW - Revealed preferences

KW - GARP

KW - SARP

U2 - 10.1007/s00199-013-0765-z

DO - 10.1007/s00199-013-0765-z

M3 - Journal article

VL - 54

SP - 463

EP - 484

JO - Economic Theory

JF - Economic Theory

SN - 0938-2259

IS - 3

ER -

ID: 82305879