Work

Testable Implications of Translation Invariance and Homotheticity: Variational, Maxmin, CARA and CRRA preferences

Year: 2015

Type: article

Abstract: We provide revealed preference axioms that characterize models of translation invariant preferences. In particular, we characterize the models of variational, maxmin, CARA and CRRA utilities. In each case we present a revealed preference axiom that is satisfied by a dataset if and only if the dataset is consistent from the corresponding utility representation. Our results complement traditional exercises in decision theory that take preferences as primitive.

Source: CaltechAUTHORS (California Institute of Technology)

DOI: 10.7907/wfa41-5z837

Authors: Chambers, Christopher P., Echenique, Federico, Saito, Kota

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2553079490

FWCI:

Cites: 10

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Related to: 10