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.
Authors
![Imran Rasul](/sites/default/files/styles/square_desktop/public/2022-08/Imran-Rasul.jpg?itok=8V_L5clA)
CPP Director, IFS Research Director
Imran is Professor of Economics at University College London and Director of the Centre for the Microeconomic Analysis of Public Policy at the IFS.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Steffen Huck
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Maja Adena
Journal article details
- Publisher
- The IFS
- Issue
- Volume 3, Issue 2, November 2017, pages 89-108
Suggested citation
M, Adena and S, Huck and I, Rasul. (2017). 'Testing Consumer Theory: Evidence from a Natural Field Experiment' 3(2/2017), pp.89–108.
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