This note presents an algorithm for testing the generalized axiom of revealed preference in time O(n2), where n is the number of observations in a given data set. Furthermore, we prove a lower bound of (n log n) on the running time of any algorithm for testing different axioms of revealed preference

We consider the computational problem of testing whether observed household consumption behavior satisfies the Collective Axiom of Revealed Preferences (CARP). We propose a graph such that the existence of a node-partitioning giving rise to two induced subgraphs that are acyclic implies that the...