players are uncertain about the rationality and conjectures of their opponents. We provide several applications of our concept …

underlying Slutsky matrix norm (SMN) and some popular discrete revealed preference (RP) measures of departures from rationality …, such as the Afriat index. We show that testing rationality in the SMN aproach with finite data is equivalent to testing it … under the RP approach. We propose a way to “summarize” the departures from rationality in a systematic fashion in finite …

Using forecasts of the inflation rate in South Africa, we study the rationality of forecasts and the shape of … find strong evidence that inflation forecasts are in line with forecast rationality. When we poolthe data, and study … the loss function, and against forecast rationality. Upon comparing the micro-level results with those for pooled and …

Given any observed demand behavior by means of a demand function, we quantify by how much it departs from rationality … correcting matrix that would yield a Slutsky ma- trix with its standard rationality properties (symmetry, singularity, and …, and applications are discussed, and illustrations are provided using several bounded rationality models. …

naïve and univariate autoregressive moving-average (ARMA) forecast and test rationality under flexible loss to allow for the …

This article analyzes the distinction between two definitions of rationality, standard expected utility maximization …