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slide19-oct14 - REVEALED PREFERENCE Siyang Xiong Rice...

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REVEALED PREFERENCE Siyang Xiong Rice University October 16, 2011 Xiong (Rice University) ECON 401 October 16, 2011 1 / 13
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Revealed Preference Two questions we will explore: When is c ( ; ± ) is a choice function? given a choice function, c ( ) ± such that c ( ) = c ( ; ± )? if not, what property should c ( ) has so that c ( ) = c ( ; ± ) ? Xiong (Rice University) ECON 401 October 16, 2011 2 / 13
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Revealed Preference When is c ( ; ± ) is a choice function? Theorem c ( ; ± ) is a choice function if and only if ± is acyclic. Xiong (Rice University) ECON 401 October 16, 2011 3 / 13
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given a choice function, c ( ) ± such that c ( ) = c ( ; ± )? An example: X = f x ; y ; z g ; 2 X = f ? ; f x g ; f y g ; f z g ; f x ; y g ; f y ; z g ; f x ; z g ; f x ; y ; z gg ; consider the following choice function c : c ( f x g ) = f x g ; c ( f y g ) = f y g ; c ( f z g ) = f z g ; c ( f x ; y g ) = f x ; y g ; c ( f y ; z g ) = f y g ; c ( f x ; z g ) = f z g ; c ( f x ; y ; z g ) = f x
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slide19-oct14 - REVEALED PREFERENCE Siyang Xiong Rice...

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