Testable Implications of Translation Invariance and Homotheticity: Variational, Maxmin, Cara and CRRA Preferences
Paper Number:
1401
Date:
01/22/2015
Abstract:
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.
Paper Length:
21
Paper:
sswp1401-3.pdf