3 papers
econ.GN2026
Ever since Ellsberg
Aluma Dembo, Shachar Kariv, Matthew Polisson +1
Ellsberg's famous paradox challenged Savage's subjective expected utility theory (EUT) -- which reduces uncertainty to risk -- by suggesting an aversion toward ambiguity. We provid…
econ.GN2024
Rationalizability, Cost-Rationalizability, and Afriat's Efficiency Index
Matthew Polisson, John K. -H. Quah
This note explains the equivalence between approximate rationalizability and approximate cost-rationalizability within the context of consumer demand. In connection with these resu…
econ.TH2024
Revealed preference with optimal transport: money pumps, bounded rationality, and preference recovery
Joshua Lanier, Matthew Polisson, John K. -H. Quah
This paper explores the connection between two distinct notions of irrationality: the extent to which the consumer fails to maximize his utility function and the extent to which th…