Authors:
Adena, Maja (WZB)
Huck, Steffen (WZB)
Rasul, Imran (UCL)
Abstract:
We present evidence from a natural field experiment designed to shed light on whether individual behavior is consistent with a neoclassical model of utility maximization subject to budget constraints. We do this through the lens of a field experiment on charitable giving. We find that the behavior of at least 80% of individuals, on both the extensive and intensive margins, can be rationalized within a standard neoclassical choice model in which individuals have preferences, defined over own consumption and their contribution towards the charitable good, satisfying the axioms of revealed preference.
Keywords:
natural field experiment; revealed preference
JEL-Classification:
C93; D01; D12; D64
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Testing Consumer Theory: Evidence From a Natural Field Experiment