RIMS-1739 On Revealed Preference and Indivisibilities

@inproceedings{Fujishige2012RIMS1739OR,
  title={RIMS-1739 On Revealed Preference and Indivisibilities},
  author={Satoru Fujishige and Zaifu Yang},
  year={2012}
}
We consider a market model in which all commodities are inherently indivisible and thus are traded in integer quantities. We ask whether a finite set of price-quantity observations satisfying the Generalized Axiom of Revealed Preference (GARP) is consistent with utility maximization. Although familiar conditions such as non-satiation become meaningless in the current discrete model, by refining the standard notion of demand set we show that Afriat’s celebrated theorem still holds true… CONTINUE READING

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