Abstract
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.
Original language | English |
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Pages (from-to) | 224-236 |
Number of pages | 13 |
Journal | Journal of Economic Theory |
Volume | 152 |
DOIs | |
Publication status | Published - Jul 2014 |
Keywords
- Quasi-concavity
- Convex preferences
- Nonlinear budget sets
- Revealed preference conditions
- AFRIATS THEOREM