A Difficulty for Economic Theory: Why Claiming the Weak Axiom is 'Weak' is Wrong

24 Pages Posted: 28 Jan 2017

Date Written: February 22, 2016

Abstract

The weak axiom of revealed preference constitutes the basis for neoclassical choice theory. Neoclassical consumer theory can be held to on the basis that the weak axiom upon which it is built is “weak” and has only very reasonable requirements of behaviour. In this paper I demonstrate with a simple psychological model why it is misleading to make such a claim, and that in fact the “weak” axiom is in fact rather strong in its requirements of choice.

Suggested Citation

Markey‐Towler, Brendan, A Difficulty for Economic Theory: Why Claiming the Weak Axiom is 'Weak' is Wrong (February 22, 2016). Available at SSRN: https://ssrn.com/abstract=2907199 or http://dx.doi.org/10.2139/ssrn.2907199

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