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Current time allocation and household production models face three major weaknesses: First, they only describe the average time allocation. Thus, information about the order of activities is lost. Therefore, it is impossible to describe the influence of activities on later ones. Such...
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We study two dimensions of complexity that may interfere with individual choice. The first one is object complexity …, which corresponds to the difficulty in evaluating any given alternative in a choice set. The second dimension is composition … complexity, which increases when suboptimal alternatives become more similar to optimal ones. We develop a satisficing …
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Given any observed finite sequence of prices, wealth and demand choices, we characterize the relation between its 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...
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