Victor H. Aguiar, Per Hjertstrand, Roberto Serrano
arXiv 1 Jun 2019 · Theoretical Economics
arXiv:1906.00296 · PDF · DOI · OpenAlex · Extracted main text
We offer a rationalization of the weak generalized axiom of revealed preference (WGARP) for both finite and infinite data sets of consumer choice. We call it maximin rationalization, in which each pairwise choice is associated with a "local" utility function. We develop its associated weak revealed-preference theory. We show that preference recoverability and welfare analysis \`a la Varian (1982) may not be informative enough, when the weak axiom holds, but when consumers are not utility maximizers. We clarify the reasons for this failure and provide new informative bounds for the consumer's true preferences.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Brown, D. and Calsamiglia, C (2007) The nonparametric approach to applied welfare analysis | 1.000 | 6 | 3 | 100% |
| 2 | Quah, J. K (2006) Weak axiomatic demand theory | 1.000 | 5 | 3 | 100% |
| 3 | Samuelson, P. A (1938) A note on the pure theory of consumer's behaviour | 1.000 | 5 | 3 | 100% |
| 4 | Varian, H. R (1982) The nonparametric approach to demand analysis | 0.964 | 29 | 7 | 90% |
| 5 | Kihlstrom, R., Mas-Colell, A., and Sonnenschein, H (1976) The demand theory of the weak axiom of revealed preference | 0.928 | 4 | 3 | 100% |
| 6 | Kim, T. and Richter, M. K (1986) Nontransitive-nontotal consumer theory | 0.928 | 4 | 3 | 100% |
| 7 | John, R (2001) The concave nontransitive consumer | 0.874 | 6 | 2 | 100% |
| 8 | Shafer, W. J (1974) The nontransitive consumer | 0.843 | 3 | 3 | 100% |
| 9 | Afriat, S. N (1967) The construction of utility functions from expenditure data | 0.811 | 4 | 2 | 100% |
| 10 | Allen, R. and Rehbeck, J (2018) Assessing Misspecification and Aggregation for Structured Preferences | 0.811 | 4 | 2 | 100% |
Showing the top 10 of 33 scored citations.