The swaps index for consumer choice

Arbeitspapier

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 primarily 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 418

Classification and Topics

• Classification: Wirtschaft ; Microeconomic Behavior: Underlying Principles ; Consumer Economics: Theory ; Welfare Economics: General ; Micro-Based Behavioral Economics: General‡
• Subject: measures of rationality ; revealed preference ; behavioral welfare economics

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lu, Mia ; Netzer, Nick
• Event: Veröffentlichung
• (who): University of Zurich, Department of Economics
• (where): Zurich
• (when): 2022

Further information

• DOI: doi:10.5167/uzh-220550
• Handle: http://hdl.handle.net/10419/266243
• Last update: 10.03.2025, 11:45 AM CET