• Media type: Report; E-Book
  • Title: Power against random expenditure allocation for revealed preference tests
  • Contributor: Hjertstrand, Per [Author]
  • Published: Stockholm: Research Institute of Industrial Economics (IFN), 2019
  • Language: English
  • Keywords: D12 ; Power ; C14 ; Revealed preference ; GARP
  • Origination:
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  • Description: This paper proposes new power indices for revealed preference tests. The indices are based on a model of irrational consumption behavior where the consumer randomly allocates a certain fraction of expenditure. The methods allow a researcher to trace out the entire power curve against random expenditure allocation. The power indices are illustrated on altruistic choices in experimental data.
  • Access State: Open Access