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| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | The swaps index for consumer choice |
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| Authors |
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| Language |
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| Institution | University of Zurich |
| Series Name | Working paper series / Department of Economics |
| Number | 418 |
| ISSN | 1664-7041 |
| Number of Pages | 29 |
| Date | 2023 |
| Abstract Text | We extend the swaps index of rationality, introduced by Apesteguia and Ballester (2015) for a finite set of alternatives, to the standard consumer choice setting with infinite commodity spaces. Applications include consumer demand from competitive budget sets and the state-space approach to choice under uncertainty. We are interested in Apesteguia and Ballester’s result that the swaps index recovers the decision-maker’s true preference from choice data for a large class of boundedly rational behavioral models. We show that this result still holds in the consumer choice setting under a suitably defined monotonicity condition. This condition is satisfied for various models of interest but violated for others. |
| Other Identification Number | merlin-id:22729 |
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| Keywords | Measures of rationality, revealed preference, behavioral welfare economics |
| Additional Information | Revised version |