Two New Proofs of Afriat's Theorem
Posted: 16 Jan 2009
Date Written: 2004
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: D11, C60
Suggested Citation: Suggested Citation