4 papers
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…
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…
Revealed preference and revealed preference cycles: a survey
Paweł Dziewulski, Joshua Lanier, John K. -H. Quah
Afriat's Theorem (1967) states that a dataset can be thought of as being generated by a consumer maximizing a continuous and increasing utility function if and only if it is free o…
Goodness-of-fit and utility estimation: what's possible and what's not
Yujian Chen, Joshua Lanier, John K. -H. Quah
A goodness-of-fit index measures the consistency of consumption data with a given model of utility-maximization. We show that for the class of well-behaved (i.e., continuous and in…