Two New Proofs of Afriat's Theorem
Posted: 16 Jan 2009
Date Written: 2004
Abstract
We provide two new, simple proofs of Afriat's celebrated theorem stating that a finite set of price-quantity observations is consistent with utility maximization if, and only if, the observations satisfy a variation of the Strong Axiom of Revealed Preference known as the Generalized Axiom of Revealed Preference.
Keywords: Afriat's theorem, SARP, GARP
JEL Classification: D11, C60
Suggested Citation: Suggested Citation
Fostel, Ana and Scarf, Herbert E. and Todd, Michael, Two New Proofs of Afriat's Theorem (2004). Economic Theory, Vol. 24, pp. 211-219, 2004, Available at SSRN: https://ssrn.com/abstract=1328587
Herbert E. Scarf
Yale University - Department of Economics, Cowles Foundation ( email )
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