In a recent and insightful paper, Echenique et al. [4] proposed the Money Pump Index(MPI) as an intuitive measure to evaluate the severity of violations of consumer rationality(defined in terms of revealed preference axioms). For practical applications, they suggest usingthe Mean or Median MPI....

We conducted an experiment to collect data on consumption decisions made by children of different age categories. In particular, our experiment involves unsophisticated discrete consumption choices,and we present a rationality test that is specially designed for the resulting choice data. Our...

We reconsider the motivation of Data Envelopment Analysis (DEA), the non-parametrictechnique that is widely employed for analyzing productive efficiency in academia, the privatesector and the public sector. We first argue that the conventional engineering motivationof DEA can be problematic...

We 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...

We develop a novel framework to analyze the structural implications of the marriage market for house-hold consumption patterns. We start by de…ning a revealed preference characterization of e¢ cient householdconsumption when the marriage is stable. In particular, stability means that the...

The implementation of Gary Beckers (1965) time allocation model is ham-pered by the fact that values of the di¤erent time uses are usually not observed.In practice, one often assumes that the value of time is uniform across time usesby using market wages. This approach implies a fundamental...