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Differentiate between the weak and the strong axioms of revealed preferences

      

Differentiate between the weak and the strong axioms of revealed preferences

  

Answers


Dana
The weak axiom of revealed bundle suggests that if a bundle (X1, X2) is directly revealed preferred to (Y1, Y2) and the two bundles are not the same then it cannot happen that (Y1,Y2) is directly revealed preferred to (X1,X2)
The strong axiom of revealed preferences requires that the same sort of condition hold for indirect revealed preference. The strong axiom states that if (X1, X2) is revealed preferred to (Y1, Y2) either directly or indirectly and (Y1, Y2) is different from (X1, X2) then (X1, X2) is revealed preferred to (Y1, Y2)

Dana05 answered the question on August 15, 2019 at 14:14


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