Non-parametric bounds for non-convex preferences

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2017
Volume: 137
Issue: C
Pages: 105-112

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Choices from linear budget sets are often used to recover consumer's preferences. The classic method uses revealed preference theory to construct non-parametric bounds on the indifference curve that passes through a given bundle. We show that these bounds do not apply to non-convex preferences, and therefore may lead to erroneous predictions and welfare analysis. We suggest an alternative that is based solely on the assumption of monotonicity of preferences.

Technical Details

RePEc Handle
repec:eee:jeborg:v:137:y:2017:i:c:p:105-112
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25