We present necessary and sufficient revealed preference conditions to verify whether a finite data set on nonlinear budget sets is consistent with the maximization of a quasi-concave utility function. When budget sets are finite unions of polyhedral convex sets, these conditions require feasibility of a set of linear inequalities, which makes them easy to use in practical applications.
- Convex preferences
- Nonlinear budget sets
- Revealed preference conditions
- AFRIATS THEOREM
Cherchye, L., Demuynck, T., & de Rock, B. (2014). Revealed preference analysis for convex rationalizations on nonlinear budget sets. Journal of Economic Theory, 152, 224-236. https://doi.org/10.1016/j.jet.2014.05.002