Normality of demand in a two-goods setting

A-Tier
Journal: Journal of Economic Theory
Year: 2018
Volume: 173
Issue: C
Pages: 361-382

Score contribution per author:

1.345 = (α=2.02 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the testable implications of normal demand in a two-goods setting. For a finite dataset on prices and quantities, we present the revealed preference conditions for normality of one or both goods. Our characterization provides an intuitive extension of the well-known Weak Axiom of Revealed Preference, and is easy to use in practice. We illustrate the empirical relevance of our theoretical results through an application to an experimental dataset. We also briefly discuss extensions of our conditions to a setting with more than two goods.

Technical Details

RePEc Handle
repec:eee:jetheo:v:173:y:2018:i:c:p:361-382
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25