weak axiom of revealed preference

Definitions

Economics

  • The assumption that a consumer who reveals strict preference for one bundle of goods over another will not, in other circumstances, reveal their preference for the second over the first. That is, if qi, qj are the vectors of goods purchased at prices pi, pj respectively, then piqi>piqj ? pjqi>pjqj. Used in proving correlation results.
  • acronymWARP
    (written as Weak axiom of revealed preference)
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