Loading...
Please wait, while we are loading the content...
Similar Documents
Referential Revealed Preference Theory
| Content Provider | Scilit |
|---|---|
| Author | Nosratabadi, Hassan |
| Copyright Year | 2017 |
| Description | Journal: SSRN Electronic Journal A choice behavior which violates the weak axiom of revealed preference is not representable by a preference relation. This causes two difficulties for economists: i. to make predictions on decision maker’s choice, and ii. to analyze welfare. In this paper, I show that to the extent that the violations of WARP are due to referential effects that cause indifference break-down, both these difficulties could be overcome. I extract a reference-dependent model from the classical theory of revealed preference that allows for endogenous formation of reference preferences. Decomposing WARP into independent axioms, a minimal deviation from the classical theory allows for preservation of the strong predictive power in the classical theory. |
| Related Links | http://www.sas.rutgers.edu/virtual/snde/wp/2017-05.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2988341 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.2988341 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2017-07-29 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Theory of Revealed Preference |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |
