What is the name of the axiom that modifies SARP to allow for the possibility that the person making choices may have convex indifference curves, but not strictly convex ones?
A) Weak Axiom of Revealed Preference (WARP)
B) Strong Axiom of Revealed Preference (SARP)
C) Generalized Axiom of Revealed Preference (GARP)

Question

Quizplus · Accepted Answer

The Generalized Axiom of Revealed Preference (GARP) modifies SARP to allow for the possibility that the person making choices may have convex indifference curves, but not strictly convex ones. GARP is a more general framework than SARP and is used to test for consistency of choices even in cases where preferences are not strictly convex.

What Is the Name of the Axiom That Modifies SARP