
This note explains the equivalence between approximate rationalizability and approximate cost-rationalizability within the context of consumer demand. In connection with these results, we interpret Afriat's (1973) critical cost efficiency index (CCEI) as a measure of approximate rationalizability through cost inefficiency, in the sense that an agent is spending more money than is required to achieve her utility targets.
cost-rationalizability, General Economics (econ.GN), ddc:330, FOS: Economics and business, D12, rationalizability, CCEI, Afriat's efficiency index, D11, Economics - General Economics
cost-rationalizability, General Economics (econ.GN), ddc:330, FOS: Economics and business, D12, rationalizability, CCEI, Afriat's efficiency index, D11, Economics - General Economics
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