Revealed Preference Analysis for Convex Rationalizations on Nonlinear Budget Sets

We present necessary and sufficient revealed preference conditions to verify whether a finite data seton nonlinear budget sets is consistent with the maximization of a quasi–concave utility function. Ourresults can be used to test for convexity of the underlying preference relation. We also show that in manysettings, our conditions are easy to use in practical applications.

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Year of publication:	2012-11
Authors:	De Rock, Bram ; Cherchye, Laurens ; Demuynck, Thomas
Institutions:	European Centre for Advanced Research in Economics and Statistics (ECARES), Solvay Brussels School of Economics and Management
Subject:	quasi-concavity \| convex preferences \| nonlinear budget sets \| revealed preference conditions

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Extent:	application/pdf
Series:	Working Papers ECARES.
Type of publication:	Book / Working Paper
Notes:	Published by: The text is part of a series ECARES Working Papers Number ECARES 2012-044 20 pages long
Classification:	C14 - Semiparametric and Nonparametric Methods ; D11 - Consumer Economics: Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010826350