A revealed preference approach to approximate utility maximisation

• 成果类型: Article
• 署名作者: Dziewulski, Pawel
• 署名单位: University of Sussex
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2025.106063
• 发表日期: 2025
• 关键词: Revealed preference; Strict preference; acyclicity; Approximate utility maximisation; Imperfect discrimination; Recoverability

摘要

We develop a revealed preference method for studying preferences of individuals whose choices may be inconsistent with utility maximisation. We show that acyclicity of the strict revealed preference is necessary and sufficient for the data to be rationalisable with approximate utility maximisation. In this model, an alternative is selected from a menu only if its utility is not significantly lower than that of any other available option. This allows us to test for consumer behaviour that is subject to imprecision, vagueness of judgement, or incommensurability, among others. Our results require minimal assumptions on the empirical framework, making them applicable to studies of choices over consumption bundles, state-contingent consumption, and lotteries.