CFDP 1415

Two New Proofs of Afriat's Theorem

Author(s): 

Publication Date: May 2003

Pages: 10

Abstract: 

We provide two new, simple proofs of Afriat’s celebrated theorem stating that a finite set of price-quantity observations is consistent with utility maximization if, and only if, the observations satisfy a variation of the Strong Axiom of Revealed Preference known as the Generalized Axiom of Revealed Preference.

Keywords: 

Afriat’s theorem, SARP, GARP

JEL Classification Codes:  D11, C60

See CFP: 1145