Two New Proofs of Afriat's Theorem

Posted: 16 Jan 2009

See all articles by Ana Fostel

Ana Fostel

University of Virginia

Herbert E. Scarf

Yale University - Department of Economics, Cowles Foundation

Michael Todd

School of Operations Research and Information Engineering

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

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

Ana Fostel (Contact Author)

University of Virginia ( email )

1400 University Ave
Charlottesville, VA 22903
United States

Herbert E. Scarf

Yale University - Department of Economics, Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3693 (Phone)
203-432-6167 (Fax)

Michael Todd

School of Operations Research and Information Engineering ( email )

Ithaca, NY
United States
607-255-9135 (Phone)
607-255-9129 (Fax)

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