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Logic of Choice and Economic Theory$
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S. N. Afriat

Print publication date: 1987

Print ISBN-13: 9780198284611

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198284616.001.0001

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Algebra of Revealed Preference

Algebra of Revealed Preference

Chapter:
(p.112) II.2 Algebra of Revealed Preference
Source:
Logic of Choice and Economic Theory
Author(s):

S. N. Afriat

Publisher:
Oxford University Press
DOI:10.1093/0198284616.003.0008

This is the second of six chapters in Part II about demand and utility cost, a typical area for what is understood as choice theory. It discusses the algebra of revealed preference. Its seven sections are: demand and utility; consistency conditions; order logic; revealed preference revealed; finite Houthakker test (for revealed preference); constructive solution (a demonstration of how the multiplier‐level solution provides an immediate construction of utility functions that fit the data in the required fashion); and multipliers and levels (as applied to utility functions).

Keywords:   choice, choice theory, consistency, demand, finite Houthakker test, mathematical economics, multipliers, order logic, revealed preference, utility, utility cost, utility functions

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