SFB 303 Discussion Paper No. A - 102

Author: Koch, Karl-Josef
Title: Mean Demand when Consumers Satisfy the Weak Axiom of Revealed Preference
Abstract: In this paper we consider consumption sectors of individuals whose demand functions are homogeneous of degree zero in prices and income. All individuals hold the same income and satisfy the corresponding budget identity and the weak axiom of revealed preference.It is shown that on any compact set of strictly positive prices and incomes this setup does not impose any restrictions on the class of mean demand functions other than the budget identity, provided the individual consumption sets are unbounded. If they are bounded below the result holds locally.
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Creation-Date: February 1987
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