Coarse revealed preference

• Main Authors: HU, Gaoji, LI, Jiangtao, QUAH, John K-H, TANG, Rui
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Coarse dataset; rationalization; revealed preference; Afriat’s Theorem; perturbation index; price misperception index; Economic Theory
• Online Access: https://ink.library.smu.edu.sg/soe_research/2767; https://ink.library.smu.edu.sg/context/soe_research/article/3766/viewcontent/CoarseRP.pdf
• Institution: Singapore Management University

We propose a novel concept of rationalization, called coarse rationalization, tailored for the analysis of datasets where an agent’s choices are imperfectly observed. We characterize those datasets which are rationalizable in this sense and present an efficient algorithm to verify the characterizing...