Just-noticeable difference as a behavioural foundation of the critical cost-efficiency index

A-Tier
Journal: Journal of Economic Theory
Year: 2020
Volume: 188
Issue: C

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

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

Abstract

Despite its ad hoc nature and lack of an appealing economic interpretation, the critical cost-efficiency index (or CCEI) proposed in Afriat (1973) is one of the most widespread measures of departures from rationality. In this paper, we provide a behavioural foundation for this index by showing that it is equivalent to a notion of the just-noticeable difference — a measure of dissimilarity between alternatives that is sufficient for the agent to tell them apart.

Technical Details

RePEc Handle
repec:eee:jetheo:v:188:y:2020:i:c:s0022053120300673
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25