Revealed preference analysis for convex rationalizations on nonlinear budget sets
Abstract
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. Our results can be used to test for convexity of the underlying preference relation. We also show that in many settings, our conditions are easy to use in practical applications.Download Info
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Paper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/369062.Length:
Date of creation: Nov 2012
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Handle: RePEc:ner:leuven:urn:hdl:123456789/369062
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Web page: http://www.kuleuven.be
Related research
Keywords:Other versions of this item:
- 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.
- Laurens Cherchye & Thomas Demuynck & Bram De Rock, 2012. "Revealed Preference Analysis for Convex Rationalizations on Nonlinear Budget Sets," Working Papers ECARES ECARES 2012-044, ULB -- Universite Libre de Bruxelles.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
References
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