Stochastic Revealed Preference and Rationalizability
نویسندگان
چکیده
منابع مشابه
Stochastic Revealed Preference and Rationalizability
This paper explorers rationalizability issues for finite sets of observations of stochastic choice in the framework introduced by Bandyopadhyay et al. (JET, 1999). Is is argued that a useful approach is to consider indirect preferences on budgets instead of direct preferences on commodity bundles. Stochastic choices are rationalizable in terms of stochastic orderings on the normalized price spa...
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In the context of finite normal form games, this paper addresses the formalization and implications of the hypothesis that players are rational and that this is common knowledge. The innovation is to admit notions of rationality other than subjective expected utility maximization. For example, rationality can be defined by the alternative restrictions that preferences are probabilistically soph...
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We introduce a game in preference form, which consists of a game form and a preference structure, and define preference rationalizability that allows for each player’s ex-post preferences over outcomes to depend on opponents’ actions. We show that preference rationalizability is invariant to redundant types and states as long as all players have simplex restrictions on their ex-post preferences...
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We develop a model of demand where consumers trade-off the utility of consumption against the disutility of expenditure. This model is appropriate whenever a consumer’s demand over a strict subset of all available goods is being analyzed. Data sets consistent with this model are characterized by the absence of revealed preference cycles over prices. The model is readily generalized to the rando...
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We expand the theory of consumer’s behavior, based on the Weak Axiom of Revealed Preference, to permit simultaneously both random choice and choice sets, which are not singletons. We provide a consistency postulate for demand behavior when such behavior is represented in terms of a stochastic demand correspondence. We show that, when the consumer spends her entire wealth, our rationality postul...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1280950