Showing 1 - 10 of 15
We develop a revealed preference approach to analyze non-unitary consumption models with intrahousehold allocations deviating from the cooperative (or Pareto efficient) solution. At a theoretical level, we establish revealed preference conditions of household consumption models with varying...
Persistent link: https://www.econbiz.de/10008630054
We present a revealed preference analysis of the testable implications of the Nash bargaining solution. Our specific focus is on a two-player game involving consumption decisions. We consider a setting in which the empirical analyst has information on both the threat points bundles and the...
Persistent link: https://www.econbiz.de/10009004306
We consider the testable implications of the Cournot model of market competition. Our approach is nonparametric in that we abstain from imposing any functional specification on market demand and firm cost functions. We derive necessary and sufficient conditions for (reduced form) equilibrium...
Persistent link: https://www.econbiz.de/10009021582
We provide a revealed preference analysis of the rational addiction model. The revealed preference approach avoids the need to impose an, a priori unverifiable, functional form on the underlying utility function. Our results extend the previously established revealed preference characterizations...
Persistent link: https://www.econbiz.de/10009148919
We consider a setting where a coalition of individuals chooses one or several alternatives from each set in a collection of choice sets. We examine the computational complexity of Pareto rationalizability. Pareto rationalizability requires that we can endow each individual in the coalition with...
Persistent link: https://www.econbiz.de/10009148921
This research examines the computational complexity of two boundedly rational choice models that use multiple rationales to explain observed choice behavior. First, we show that the notion of rationalizability by K rationales as introduced by Kalai, Rubinstein, and Spiegler (2002) is NP-complete...
Persistent link: https://www.econbiz.de/10008765172
We present a household consumption model that accounts for caring household members, while allowing for noncooperative behavior in decisions on public goods. The intrahousehold consumption outcome critically depends on the degree of caring between the household members. By varying the degree of...
Persistent link: https://www.econbiz.de/10008765825
We develop a novel framework to analyze the structural implications of the marriage market for household consumption patterns. We start by defining a revealed preference characterization of efficient household consumption when the marriage is stable. In particular, stability means that the...
Persistent link: https://www.econbiz.de/10010752636
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...
Persistent link: https://www.econbiz.de/10010610848
We provide a revealed preference analysis of the transferable utility hypothesis, which is widely used in economic models. First, we establish revealed preference conditions that must be satisfied for observed group behavior to be consistent with Pareto efficiency under transferable utility....
Persistent link: https://www.econbiz.de/10008838742