Revealed preference analysis for convex rationalizations on nonlinear budget sets

We present necessary and sufficient revealed preference conditions to verify whether a finite data set on nonlinear budget sets is consistent with the maximization of a quasi-concave utility function. When budget sets are finite unions of polyhedral convex sets, these conditions require feasibility of a set of linear inequalities, which makes them easy to use in practical applications.

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Year of publication:	2014
Authors:	Cherchye, Laurens ; Demuynck, Thomas ; De Rock, Bram
Published in:	Journal of Economic Theory. - Elsevier, ISSN 0022-0531. - Vol. 152.2014, C, p. 224-236
Publisher:	Elsevier
Subject:	Quasi-concavity \| Convex preferences \| Nonlinear budget sets \| Revealed preference conditions

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Type of publication:	Article
Classification:	C14 - Semiparametric and Nonparametric Methods ; D11 - Consumer Economics: Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010785019