SFB 303 Discussion Paper No. B-274

Author: Sippel, Reinhard
Title: An Experiment on the Pure Theory of Consumer's Behaviour
Abstract: By checking whether consumer demand
satisfies the axioms of revealed preference, one can test the empirical validity of
the neoclassical theory of consumer behaviour. However, applying the
axioms to actual consumer purchase data is difficult, if not impossible,
since serious problems of both a methodological and practical nature arise.
This paper, after commenting on the few previous empirical studies, reports
an experimental approach to revealed preference theory. Data were obtained
through a controlled experiment that involved real consumption of the
goods chosen. We find that our subjects often violated the axioms.
Keywords: Countertrade, sovereign debt, creditworthiness.
JEL-Classification-Number: C 91, D 12
Creation-Date: August 1995
URL:
../1995/b/bonnsfb274.pdf

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