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A simplified test for preference rationality of two-commodity choice

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A Publisher’s Erratum to this article was published on 13 June 2008

Abstract

We provide a simplified test to determine if choice data from a two-commodity consumption set satisfies the Generalized Axiom of Revealed Preference (GARP), and thus the preference or utility maximization hypothesis. We construct an algorithm for this test and illustrate its application on experimental choice data.

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Author information

Authors and Affiliations

  1. Department of Economics, Emory University, Atlanta, GA, 30322-2240

    Samiran Banerjee

  2. College of Business, Western Carolina University, Cullowhee, NC, 28723, USA

    James H. Murphy

Authors
  1. Samiran Banerjee
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  2. James H. Murphy
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Corresponding author

Correspondence to Samiran Banerjee.

Additional information

JEL Classification C91, D11, D12

An erratum to this article is available at http://dx.doi.org/10.1007/s10683-008-9205-5.

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Banerjee, S., Murphy, J.H. A simplified test for preference rationality of two-commodity choice. Exp Econ 9, 67–75 (2006). https://doi.org/10.1007/s10683-006-4313-6

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  • DOI: https://doi.org/10.1007/s10683-006-4313-6

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