A Functional Approach to Revealed Preference
29 Pages Posted: 21 Oct 2018
Date Written: October 21, 2018
We develop a systematic, functional approach to revealed preference tests based on completing preferences. Our approach is based on the notion of sequential closure, which generalizes the notion of transitive closure. We show that revealed preference tests developed for various decision theories can be seen as special cases of our approach. We also illustrate the approach constructing revealed preference tests for theories of decision under uncertainty whose revealed preference implications had not been studied before.
Keywords: revealed preference tests, sequential closures, monotone congruence, functional approach
JEL Classification: D01, D11
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