Published March 8, 2016
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Testable Implications of Translation Invariance and Homotheticity: Variational, Maxmin, CARA and CRRA preferences
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 dataset is consistent from the corresponding utility representation. Our results complement traditional exercises in decision theory that take preferences as primitive.
Additional Information
January 2015. We are very grateful to Simon Grant and Massimo Marinacci, who posed questions to us that led to some of the results in this paper.Attached Files
Accepted Version - sswp1401.pdf
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Additional details
- Eprint ID
- 65221
- Resolver ID
- CaltechAUTHORS:20160308-151531257
- Created
-
2016-03-08Created from EPrint's datestamp field
- Updated
-
2020-03-09Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 1401