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A Simple Test of Richter-Rationality

Author

Listed:
  • Marc-Arthur Diaye

    (Centre d’Etude de l’Emploi and University of Evry (EPEE))

  • Michal Wong-Urdanivia

    (Centre de Recherche en Mathématiques, Statistique, et Economie Mathématique (CERMSEM), University Paris 1 Panthéon-Sorbonne)

Abstract

We propose in this note a simple non-parametric test of Richterrationality which is the basic definition of rationality used in choice functions theory. Loosely speaking, the data set is rationalizable in the Richter’ sense if there exists a complete-acyclic binary relation that rationalizes the data set. Hence a data set is rationalizable in the Richter’ sense if there exists a variable intervals function which rationalizes this data set. Since an acyclic binary relation is not necessary transitive then the proposed Richter-rationality test is weaker than GARP. Finally the test is performed over Mattei’s1 data sets.

Suggested Citation

  • Marc-Arthur Diaye & Michal Wong-Urdanivia, 2006. "A Simple Test of Richter-Rationality," Documents de recherche 06-01, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    • Handle: RePEc:eve:wpaper:06-01
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    GARP; Choice Functions; Richter-Rationality; Variable Intervals Functions;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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