Revealed Preference and the Subjective State Space Hypothesis
Payro Chew, Fernando (Boston University)

Date:	2019
Description:	22 pàg.
Abstract:	Dekel et al. (2001) extends Kreps' (1979) model for preference over menus of deterministic alternatives to a model for preference over menus of lotteries. They show that a simple set of axioms characterizes a representation that can be interpreted as if the agent is uncertain about her future tastes. This taste uncertainty is summarized by a set of possible future preferences which is referred to as the subjective state space. Their approach is axiomatic; thus, testability requires that the entire preference order be observable. This paper provides corresponding revealed preference analysis assuming that only finitely many choices are observed. For a particular class of data sets, it is shown that the characterizing conditions can be reformulated as nonlinear systems of inequalities for which the existence of solutions can be verified using numerical methods. The analysis covers the case where available data involves only menus of alternatives (and not lotteries). Hence, our results also provide revealed preference characterizations for Kreps (1979).
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució i la comunicació pública de l'obra, sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Subject:	Revealed preferences ; Menus ; Subjective State Space
Published in:	Journal of Mathematical Economics, Vol. 82 (2019) , p. 61-68, ISSN 1873-1538

DOI: 10.1016/j.jmateco.2019.01.010

Postprint 24 p, 735.3 KB

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