American Economic Review Vol. 107 No. 4 2017

A Comprehensive Approach to Revealed Preference Theory

Hiroki Nishimura¹; Efe A. Ok²; John K.-H. Quah³

¹ Department of Economics, University of California-Riverside, 3128 Sproul Hall, Riverside, CA 92521 (e-mail: ) · ² Department of Economics and Courant Institute of Applied Mathematics, New York University, 19 West Fourth Street, New York, NY 10003 (e-mail: ) · ³ Department of Economics, Johns Hopkins University, Wyman Park Building 592, 3100 Wyman Park Drive, Baltimore, MD 21211, and Department of Economics, National University of Singapore (e-mail: )

Abstract

We develop a version of Afriat's theorem that is applicable in a variety of choice environments beyond the setting of classical consumer theory. This allows us to devise tests for rationalizability in environments where the set of alternatives is not the positive orthant of a Euclidean space and where the rationalizing utility function is required to satisfy properties appropriate to that environment. We show that our results are applicable, amongst others, to choice data on lotteries, contingent consumption, and intertemporal consumption.

DOI

10.1257/aer.20150947

Volume

107

Issue

4

Pages

1239-1263

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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