@techreport{770e5d0d66604740a756e02aad586e0f,

title = "Revealed cardinal preference",

abstract = "I prove that as long as we allow the marginal utility for money lamda to vary between purchases (similarly to the budget) then the quasi-linear and the ordinal budget-constrained models rationalize the same data. However, we know that lamda is approximately constant. I provide a simple constructive proof for the necessary and sufficient condition for the constant lambda rationalization, which I argue should replace the Generalized Axiom of Revealed Preference in empirical studies of consumer behavior.",

author = "Jozsef Sakovics",

year = "2012",

language = "English",

series = "ESE Discussion Papers",

publisher = "Edinburgh School of Economics, University of Edinburgh",

number = "212",

type = "WorkingPaper",

institution = "Edinburgh School of Economics, University of Edinburgh",

}