We extend the revealed preference theory of consumers behavior originating in Samuelsons Weak Axiom of Revealed Preference to simultaneously permit both non-singleton choice sets and random choice. We provide a consistency postulate for demand behavior when such behavior is represented in terms of a stochastic demand correspondence. When the consumer spends his or her entire wealth, our rationality postulate is equivalent to a condition we term stochastic substitutability. This equivalence generates as special cases in most of the basic results regarding consumers demand behavior in the existing revealed preference literature.

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Revealed Preference with Stochastic Demand Correspondence
1Durham University, indraneel@cssscal.org
2University of California, Riverside, prasanta.pattanaik@ucr.edu
Citation Information: The B.E. Journal of Theoretical Economics. Volume 10, Issue 1, Pages –, ISSN (Online) 1935-1704, DOI: 10.2202/1935-1704.1654, August 2010
Publication History:
- Published Online:
- 2010-08-14
Keywords: stochastic demand correspondence; weak axiom of revealed preference; weak axiom of stochastic revealed preference; general substitution theorem; demand theorem; demand aggregation


















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