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