Revealed Preference Analysis for Convex Rationalizations on Nonlinear Budget Sets
AbstractWe 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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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number ECARES 2012-044.
Length: 20 p.
Date of creation: Nov 2012
Date of revision:
Publication status: Published by:
quasi-concavity; convex preferences; nonlinear budget sets; revealed preference conditions;
Other versions of this item:
- Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram, 2014. "Revealed preference analysis for convex rationalizations on nonlinear budget sets," Journal of Economic Theory, Elsevier, vol. 152(C), pages 224-236.
- Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2012. "Revealed preference analysis for convex rationalizations on nonlinear budget sets," Center for Economic Studies - Discussion papers ces12.15, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-15 (All new papers)
- NEP-MIC-2012-12-15 (Microeconomics)
- NEP-UPT-2012-12-15 (Utility Models & Prospect Theory)
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