Normality of demand in a two-goods setting

• 成果类型: Article
• 署名作者: Cherchye, Laurens; Demuynck, Thomas; De Rock, Bram
• 署名单位: KU Leuven; Universite Libre de Bruxelles
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.11.006
• 发表日期: 2018
• 页码: 361-382
• 关键词: Revealed preference; normality; Substitution effect

摘要

We study the testable implications of normal demand in a two-goods setting. For a finite dataset on prices and quantities, we present the revealed preference conditions for normality of one or both goods. Our characterization provides an intuitive extension of the well-known Weak Axiom of Revealed Preference, and is easy to use in practice. We illustrate the empirical relevance of our theoretical results through an application to an experimental dataset. We also briefly discuss extensions of our conditions to a setting with more than two goods. (C) 2017 Elsevier Inc. All rights reserved.