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On the complexity of testing the Collective Axiom of Revealed Preference

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  • Talla Nobibon, Fabrice
  • Spieksma, Frits C.R.

Abstract

We prove that the problem of testing whether data of consumption expenditures satisfy the Collective Axiom of Revealed Preference (CARP) is an NP-complete problem.

Suggested Citation

  • Talla Nobibon, Fabrice & Spieksma, Frits C.R., 2010. "On the complexity of testing the Collective Axiom of Revealed Preference," Mathematical Social Sciences, Elsevier, vol. 60(2), pages 123-136, September.
    • Handle: RePEc:eee:matsoc:v:60:y:2010:i:2:p:123-136
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    References listed on IDEAS

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    1. Cherchye, Laurens & De Rock, Bram & Sabbe, Jeroen & Vermeulen, Frederic, 2008. "Nonparametric tests of collectively rational consumption behavior: An integer programming procedure," Journal of Econometrics, Elsevier, vol. 147(2), pages 258-265, December.
    2. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2007. "The Collective Model of Household Consumption: A Nonparametric Characterization," Econometrica, Econometric Society, vol. 75(2), pages 553-574, March.
    3. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
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    Cited by:

    1. Thomas Demuynck, 2014. "The computational complexity of rationalizing Pareto optimal choice behavior," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(3), pages 529-549, March.
    2. Smeulders, Bart & Crama, Yves & Spieksma, Frits C.R., 2019. "Revealed preference theory: An algorithmic outlook," European Journal of Operational Research, Elsevier, vol. 272(3), pages 803-815.
    3. Fabrice Talla Nobibon & Laurens Cherchye & Yves Crama & Thomas Demuynck & Bram De Rock & Frits C. R. Spieksma, 2016. "Revealed Preference Tests of Collectively Rational Consumption Behavior: Formulations and Algorithms," Operations Research, INFORMS, vol. 64(6), pages 1197-1216, December.
    4. Fabrice Talla Nobibon & Cor A. J. Hurkens & Roel Leus & Frits C. R. Spieksma, 2012. "Coloring Graphs Using Two Colors While Avoiding Monochromatic Cycles," INFORMS Journal on Computing, INFORMS, vol. 24(3), pages 485-499, August.
    5. Smeulders, Bart & Cherchye, Laurens & De Rock, Bram & Spieksma, Frits C.R. & Talla Nobibon, Fabrice, 2015. "Complexity results for the weak axiom of revealed preference for collective consumption models," Journal of Mathematical Economics, Elsevier, vol. 58(C), pages 82-91.
    6. Demuynck, Thomas, 2011. "The computational complexity of rationalizing boundedly rational choice behavior," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 425-433.

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