Testable Implications of Translation Invariance and Homotheticity: Variational, Maxmin, Cara and CRRA Preferences
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 data set is consistent from the corresponding utility representation. Our results complement traditional exercies in decision theory that take preferences as primitive.