Showing 1 - 10 of 15
The theory of revealed preferences offers an elegant way to test the neoclassical model of utility maximization subject to a linear budget constraint. In many settings, however, the set of available consumption bundles does not take the form of a linear budget set. In this paper, we adjust the...
Persistent link: https://www.econbiz.de/10010877064
We focus on the revealed preference conditions that characterize the collection of finite data sets that are consistent with the maximization of a weakly separable utility function. From a theoretical perspective, we show that verifying these revealed preference conditions is a difficult...
Persistent link: https://www.econbiz.de/10010539140
We present a novel framework for analyzing cost minimizing production behavior in multi-output settings. Our specific focus is on dealing with joint inputs, i.e. inputs that are simultaneously used for the production of multiple outputs. Here, we distinguish between two possible approaches. The...
Persistent link: https://www.econbiz.de/10010539143
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 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 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 derive necessary and sufficient testable implications on the reduced form price and quantity functions for the Bresnahan-Lau model of market competition. The conditions are twofold. A first condition relates to the fact that the reduced form price function should correspond to an inverse...
Persistent link: https://www.econbiz.de/10008516204
Focusing on the testable implications on the equilibrium manifold, we show that the rationalizability problem is NP-complete. Subsequently, we present an integer programming (IP) approach to characterizing general equilibrium models. This approach avoids the use of the Tarski-Seidenberg...
Persistent link: https://www.econbiz.de/10008577978
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