Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266243 
Year of Publication: 
2022
Series/Report no.: 
Working Paper No. 418
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
We extend the swaps index of rationality, introduced by Apesteguia and Ballester (2015) for a finite set of alternatives, to the standard consumer choice setting with infinite commodity spaces. Applications include consumer demand from competitive budget sets and the state-space approach to choice under uncertainty. We are primarily interested in Apesteguia and Ballester's result that the swaps index recovers the decision-maker's true preference from choice data for a large class of boundedly rational behavioral models. We show that this result still holds in the consumer choice setting under a suitably defined monotonicity condition. This condition is satisfied for various models of interest but violated for others.
Subjects: 
measures of rationality
revealed preference
behavioral welfare economics
JEL: 
D01
D11
D60
D90
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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