A Measure of Rationality and Welfare

• 成果类型: Article
• 署名作者: Apesteguia, Jose; Ballester, Miguel A.
• 署名单位: ICREA; Pompeu Fabra University; Autonomous University of Barcelona
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/683838
• 发表日期: 2015
• 页码: 1278-1310
• 关键词: LINEAR ORDERING PROBLEM; INPUT-OUTPUT MATRICES; choice functions; utility; money; sets

摘要

Evidence showing that individual behavior often deviates from the classical principle of preference maximization has raised at least two important questions: (1) How serious are the deviations? (2) What is the best way to analyze choice behavior in order to extract information for the purpose of welfare analysis? This paper addresses these questions by proposing a new way to identify the preference relation that is closest, in terms of welfare loss, to the revealed choice.