A Characterization of Rationalizable Consumer Behavior

S-Tier
Journal: Econometrica
Year: 2015
Volume: 83
Pages: 175-192

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

For an arbitrary data set D = {(p, x)} ⊆ (ℝ<sub>+</sub>-super-m∖ {0}) × ℝ<sub>+</sub>-super-m, finite or infinite, it is shown that the following three conditions are equivalent: (a) D satisfies GARP; (b) D can be rationalized by a utility function; (c) D can be rationalized by a utility function that is quasiconcave, nondecreasing, and that strictly increases when all its coordinates strictly increase. Examples of infinite data sets satisfying GARP are provided for which every utility rationalization fails to be lower semicontinuous, upper semicontinuous, or concave. Thus condition (c) cannot be substantively improved upon.

Technical Details

RePEc Handle
repec:wly:emetrp:v:83:y:2015:i::p:175-192
Journal Field
General
Author Count
1
Added to Database
2026-01-29