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
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.
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