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Revealed preference theory: An algorithmic outlook

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  • Smeulders, Bart
  • Crama, Yves
  • Spieksma, Frits C.R.

Abstract

Revealed preference theory is a domain within economics that studies rationalizability of behavior by (certain types of) utility functions. Given observed behavior in the form of choice data, testing whether certain conditions are satisfied gives rise to a variety of computational problems that can be analyzed using operations research techniques. In this survey, we provide an overview of these problems, their theoretical complexity, and available algorithms for tackling them. We focus on consumer choice settings, in particular individual choice, collective choice and stochastic choice settings.

Suggested Citation

  • Smeulders, Bart & Crama, Yves & Spieksma, Frits C.R., 2019. "Revealed preference theory: An algorithmic outlook," European Journal of Operational Research, Elsevier, vol. 272(3), pages 803-815.
  • Handle: RePEc:eee:ejores:v:272:y:2019:i:3:p:803-815
    DOI: 10.1016/j.ejor.2018.04.026
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