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Theoretical Economics
Article . 2026 . Peer-reviewed
License: CC BY NC
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SSRN Electronic Journal
Article . 2018 . Peer-reviewed
Data sources: Crossref
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Coarse Revealed Preference

Authors: HU, Gaoji; LI, Jiangtao; QUAH, John K.; TANG, Rui;

Coarse Revealed Preference

Abstract

We propose a novel concept of rationalization, called coarse rationalization , tailored for the analysis of datasets where an agent's choices are imperfectly observed. We characterize those datasets, which are rationalizable in this sense and present an efficient algorithm to verify the characterizing condition. We then demonstrate how our results can be applied through a duality approach to test the rationalizability of datasets with perfectly observed choices but imprecisely observed linear budget sets. For datasets that consist of both perfectly observed feasible sets and choices but are inconsistent with perfect rationality, our results could be used to measure the extent to which choices or prices have to be perturbed to recover rationality.

Country
Singapore
Keywords

revealed preference, 330, Afriat’s Theorem, Coarse dataset, price misperception index, perturbation index, rationalization, Economic Theory

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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gold