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Frick, Mira - In: Theoretical economics : TE ; an open access journal in … 11 (2016) 3, pp. 757-772

\textit{monotone threshold representation}: There is an underlying rational benchmark, corresponding to maximization of a … quantified by a threshold map $\delta$, which is monotone with respect to set inclusion. We derive an axiomatic characterization … of the model, extending familiar characterizations of rational choice. We classify monotone threshold representations as …

Persistent link: https://www.econbiz.de/10011671902

Two-stage threshold representations

Manzini, Paola; Mariotti, Marco; Tyson, Christopher J. - In: Theoretical economics : TE ; an open access journal in … 8 (2013) 3, pp. 875-882

according to a criterion pass a menu-dependent threshold, and then maximizes a second criterion to narrow the selection further …

Persistent link: https://www.econbiz.de/10011685068

Satisficing behavior with a secondary criterion

Tyson, Christopher J. - 2014

Using the techniques of revealed preference analysis, we study a two-stage model of choice behavior. In the first stage, the decision maker maximizes a menu-dependent binary relation encoding preferences that are imperfectly perceived. In the second, a menu-independent binary relation is...

Persistent link: https://www.econbiz.de/10010472896

The swaps index for consumer choice

Lu, Mia; Netzer, Nick - 2022

We extend the swaps index of rationality, introduced by Apesteguia and Ballester (2015) for a finite set of alternatives, to the standard consumer choice setting with infinite commodity spaces. Applications include consumer demand from competitive budget sets and the state-space approach to...

Persistent link: https://www.econbiz.de/10013440072

Correcting for random budgets in revealed preference experiments

Mahmood, Mir Adnan; Rehbeck, John - In: Games 13 (2022) 2, pp. 1-14

Experiments on revealed preference often use budget sets that are randomly and independently drawn according to some criteria for each participant. However, this means that the budget sets faced by different individuals are not the same. This paper proposes a method to control for these...

Persistent link: https://www.econbiz.de/10013172519

Choice, Rationality and Welfare Measurement

Green, Jerry R.; Hojman, Daniel - 2007

We present a method for evaluating the welfare of a decision maker, based on observed choice data. Unlike the standard economic theory of revealed preference, our method can be used whether or not the observed choices are rational. Paralleling the standard theory we present a model for choice...

Persistent link: https://www.econbiz.de/10014222674

Revealed Preference Analysis With Normal Goods : Application to Cost of Living Indices

Cherchye, L. - 2018

We present a revealed preference methodology for nonparametric demand analysis under the assumption of normal goods. Our methodology is flexible in that it allows for imposing normality on any subset of goods. We show the usefulness of our methodology for empirical welfare analysis through cost...

Persistent link: https://www.econbiz.de/10012920851

A Functional Approach to Revealed Preference

Freer, Mikhail - 2018

We develop a systematic, functional approach to revealed preference tests based on completing preferences. Our approach is based on the notion of sequential closure, which generalizes the notion of transitive closure. We show that revealed preference tests developed for various decision theories...

Persistent link: https://www.econbiz.de/10012909144

A Generalized Unification Theorem for Choice Theoretic Foundations : Avoiding the Necessity of Pairs and Triplets

He, Junnan - 2012

This paper is concerned with the axiomatic foundation of the revealed preference theory. Many well-known results in literature rest upon the ability to choose over budget sets that contains only 2 or 3 elements, the situations which are not observable in real life. In order to give a more...

Persistent link: https://www.econbiz.de/10013106619

On the necessity of pairs and triplets for the equivalence between rationality axioms

He, Junnan - 2012

This paper is concerned with the axiomatic foundation of the revealed preference theory. Many well-known results in the literature rest upon the ability to choose over budget sets that contain only 2 or 3 elements. This paper shows that for any given choice function, many of the famous...

Persistent link: https://www.econbiz.de/10009579814