Advanced Microeconomics/Revealed Preferences

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Weak Axiom of Revealed Preferences

The demand function x(p,w) satisfies the weak axiom of revealed preference if:
(p,w),(p,w) if px(p,w)w and x(p,w)x(p,w) then px(p,w)>w


In words:
The consumer faced with (p,w) could have chosen $\funcd{x}{p^{\prime},w^{\prime}}$ but chose x(p,w), assuming the consumer chooses consistently, if $\funcd{x}{p^{\prime},\primd{w}}$ is ever chosen, x(p,w) must not be affordable. Hence, px(p,w)>w

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