Demand properties of concavitiable preferences

The purpose of the present paper is to clarify the relation between choice theory for individual consumers, i.e., the observed demand behavior, and the preference ordering >= of that individual. Specifically, we study how concavifiability (i.e., representability of >= by a concave utility function) is expressed by quantities (cross-coefficients) appearing in revealed preferences theory. We present a sequence of rather explicit necessary conditions for concavifiability. All these conditions are quantitative asymptotic strengthenings of the strong axiom of revealed preference. The results and concepts are illustrated by means of examples in which an expenditure data is defined by providing its generating utility function. (c) 2006 Elsevier B.V. All rights reserved.